Deal Size
$475.0M
Cap Rate
Est. 6.65%
$/SF
—
$/Unit
$596,734
Occupancy
—
RXR is repositioning an older, distressed office asset into residential housing in downtown NYC.
RXR is executing a strategy of reinventing older office assets through adaptive reuse, specifically converting office space to residential units.
Seller motivation not disclosed, but the property was described as 'recently in distress.'
This transaction signals continued institutional appetite for large-scale office-to-residential conversions in prime NYC locations despite high construction costs.
$475.0M
Apollo, JP Morgan
The conversion targets the high demand for residential units in downtown Manhattan, leveraging the city's need for housing supply.
Conversion of existing office stock into residential units addresses supply constraints in the residential sector.
Significant value-add opportunity through the office-to-residential conversion of a distressed asset, creating 796 new residential units.
The complexity and execution risk associated with converting a 33-story office building to residential use, including zoning and construction challenges.
HighFinancing secured from major institutions (Apollo, JP Morgan) suggests robust underwriting and confidence in the conversion plan.
“London has been a trading and financial hub for more than a 1,000 years, and maintaining it as a vibrant place for finance and business is critical to the health of the UK economy.”
“Slowly rising inflationary pressures could be 'the skunk at the party' that derails bullish momentum for the market.”
“The war creates the potential for significant ongoing oil and commodity price shocks, along with the reshaping of global supply chains, which may lead to stickier inflation and ultimately higher inter...”
“Having those folks, their throat on the Strait of Hormuz, and funding all these proxy wars. Why the western world put up with all these proxy wars for 45 years is kind of beyond me.”
“This represents the largest investment cycle in the history of capitalism.”
650 Fifth Avenue
New York · Office · recapitalization
770 Broadway
New York City · Office · recapitalization
The Jacx
New York City · Office · refinancing
CitySpire
New York City · Office · acquisition
123 Main Tower
New York City · Office · acquisition
Political Debate Intensifies Over NYC Homeownership Policies Apr 8, 2026
sig: 70 · 1 sources
Soloviev, SL Green Sign NYC's First $320-Per-SF Leases Apr 8, 2026
sig: 70 · 1 sources
New York Real Estate Deals Surge on April 3, 2026
sig: 40 · 3 sources
New York Offers Abundant Office Space, Outshining Miami, Apr 4, 2026
sig: 70 · 1 sources
Rent Guidelines Board Faces Criticism for Ineffective Policies Apr 4, 2026
sig: 40 · 2 sources