RXR Realty signs $731M senior refi with AIG, Morgan Stanley for office in Midtown West

RXR Realty through the entity C & K 1285 Owner LLC as borrower signed a refi loan with lender AIG and Morgan Stanley through the entity American General Life Insurance Company valued at $731 million for the office building (O4) at 1285 Avenue Of The Americas in Midtown West, Manhattan. This is part of a $980 million refinance for the building on a loan with an original principal of $1.2 billion, The Real Deal reported.
The deal closed on October 26, 2023 and was recorded on November 9, 2023. The prior lender was AIG and Morgan Stanley which held debt that had an original loan amount of $925 million.

The property has 1,613,847 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $452 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on May 20, 2016, for $1.3 billion. The signatory for RXR Realty was David Frank. The signatory for AIG and Morgan Stanley was Michael Medvin and Jane Lam. The Real Deal reported that the original $1.2 billion loan was refinanced to $980 million through a $220 million equity investment as a loan paydown and boost to reserves.  The new senior loan is $725 million refinanced down from $925 million, plus $6 million in renovation financing.

The property

The office building in Midtown West has 1,613,847 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 400 feet deep with a total lot size of 80,333 square feet. The zoning is C5-3 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $783.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $4,735 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 6th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 21.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 29 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the two commercial properties representing 3,247,391 square feet of the 3,247,391 square feet. The two identified owners are RXR Realty and Commonwealth Partners.
There are no active new building construction projects on this tax block.

All properties are office.

The borrower

The PincusCo database currently indicates that RXR Realty owned at least 20 commercial properties with 676 residential units in New York City with 9,282,177 square feet and a city-determined market value of $3.1 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 92 percent of the 9,282,177 square feet of built space are office properties, with D3 properties next occupying 4 percent of the space. The bulk, or 86 percent of the built space, is in Manhattan, with Brooklyn next at 11 percent of the space.

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