NorthStar/RXR New York Metro Secures Minority Interest in NYC Office Building

NorthStar/RXR New York Metro Real Estate Inc., a publicly registered non-traded real estate investment trust sponsored by NorthStar Asset Management Group (NYSE: NSAM) and RXR Realty, completed the acquisition of an indirect minority interest in 1285 Avenue of the Americas, a class A office building located in midtown Manhattan for a purchase price of approximately $1.9 million, including closing costs.

The acquisition was part of an approximately $1.65 billion transaction sourced by RXR Realty. NorthStar/RXR participated in the transaction with an investor group led by RXR Real Estate Value Added Fund – Fund III LP, an institutional real estate private equity fund sponsored by RXR, as well as other institutional third party real estate investors and high net worth individuals.

1285 Avenue of the Americas is a 39-story, 1.8 million-square-foot office building located in Manhattan’s Sixth Avenue and Rockefeller Center corridor, a leading office submarket serving the financial services, media and communications industries with more than 45 million square feet of office space. The property occupies a full city block, has convenient access to public transportation and connects directly to the underground Rockefeller Center concourse. It also features approximately 25,000 square feet of retail space and approximately 84,000 below-grade square footage.

The property, which is currently 99 percent occupied, serves as the North American headquarters for UBS AG, the global headquarters for BBDO Worldwide, and the global headquarters for Paul, Weiss, Rifkind, Wharton & Garrison LLP.

NorthStar/RXR New York Metro Real Estate was formed to acquire a portfolio of commercial real estate concentrated in the New York metropolitan area and, in particular New York City, with a focus on office, mixed-use properties and a lesser emphasis on multifamily properties. The REIT went effective in February 2015 and has raised $6.5 million in investor equity since inception, according to the latest Stanger Market Pulse.

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