Major Manhattan Trophy Asset Lands Financing

Morgan Stanley and New York Community Bank provided the new loan for RXR Realty’s property, adding to $810 million in existing debt.
Starrett-Lehigh Building. Image courtesy of RXR Realty

RXR Realty has taken a $50 million supplemental mortgage for the largest property in its portfolio: the 2.3 million-square-foot Starrett-Lehigh Building in Manhattan, according to public records. Morgan Stanley and New York Community Bank provided the note, which adds to $810 million in financing taken from the same lenders in stages between September 2018 and August 2019.

Shorenstein Properties traded the property in mid-2011 for $920 million, according to Yardi Matrix. Shortly after the deal closed, RXR rebranded and renovated the building. The Blackstone Group later acquired a 49 percent stake in the asset in 2015, The Real Deal reported.

Located on a full city block at 601 W. 26th St. in Chelsea, the property rises 20 stories three blocks from the $16 billion, mixed-use Hudson Yards development. The Starrett-Lehigh Building, constructed between 1930 and 1931 as a multi-story warehouse, was converted to its current office use in 2000. The structure’s tenant roster includes Ralph Lauren’s North American headquarters, Martha Stewart Living Omnimedia and the Department of Homeland Security’s Immigration and Customs Enforcement agency.