RXR Realty has acquired a 42% stake in Extell’s portfolio of Manhattan luxury rentals in a deal valued at roughly $800 million, according to the Financial Times. The transaction includes 555 Tenth Avenue (AKA 555TEN) and 510 East 14th Street (AKA EVGB).
- 555TEN near Hudson Yards: The 600-unit building contains 476,000 SF of rentable residential space. Solil Management owns the underlying ground.
- EVGB in the East Village: The 160-unit building spans roughly 121,547 SF of residential space.
Dislocation, not distress: The transaction is consistent with a market where there has been little outright distress; however, there has been increasing opportunities to supply capital to stressed developers on favorable terms.
Heard on the Street: RXR’s Scott Rechler: “New York’s success was never in doubt and with this investment, we’re putting our money where our mouth is.” The portfolio had been valued at more than $1 billion before the pandemic. [FinancialTimes]