RXR and Hudson Bay Capital have joined forces through their Office Recovery Fund to acquire and revitalize 620 Ave. of the Americas, a large office and retail building in Manhattan’s Flatiron neighborhood. The joint venture secured a $320 million loan facility for the transaction.
Despite having historically been fully occupied with high-quality tenants, two prominent tenants – WeWork on the office side and Bed Bath & Beyond on the retail side – declaring bankruptcy resulted in over 50% vacancy at the property. However, RXR has successfully leased out over 300,000 square feet of new or renewed office space within the past two years, including notable names like Cole Haan and SEIU Local 32BJ.
According to Scott Rechler, chairman and CEO of RXR: “This recapitalization is evidence that with strategic capital investment paired with strong capabilities in an appropriate asset structure can lead iconic buildings such as 620 Ave. of Americas to thrive even after facing challenges brought about by COVID-19.” He also expressed his unwavering belief in New York City’s recovery despite recent setbacks caused by pandemic-related disruptions.
