RXR Secures $200M in Acquisition Financing for 787 KSF Lower Manhattan Office Building
- Jun 06, 2014
RXR Realty has secured $200 million in acquisition financing for 61 Broadway, a 786,975-square-foot office building in downtown Manhattan.
HSBC provided the $200 million non-recourse loan, in which $185 million was funded at closing with an additional $15 million in proceeds for future capital expenditures and leasing commissions to be drawn down by RXR’s option, according tot he news release.
RXR bought the 98-year -old 33-story tower in March for $330 million from Broad Street Development, a company operated by Raymond Chalme and Daniel Blanco, according to Crains.
JLL represented the buyer both in the acquisition and financing transactions. Brokerage team Kelly Gaines, managing director and Brett Rosenberg, senior vice president led JLL in acquisition financing transaction
“RXR has been looking for a downtown property for quite some time, they’re very attracted to the downtown market because there’s a lot of room for rent growth there,” Gaines told Commercial Property Executive.
The historical skyscraper in the financial district is recognized for its clean, geometric shape and hosts a variety of tenants in the financial, legal, education, technology and healthcare sectors.
In October, through a joint venture, RXR bought 237 Park Avenue, a 21-story office building, from an entity controlled by an affiliate of Lehman Bros. Holdings Inc.