In July, Seth Pinsky, then the president of the New York City Economic Development Corporation, announced he would soon shift from the public sector to the private sector. In his decade-long stint at the EDC, Mr. Pinsky boosted his reputation citywide by helping to secure a number of high-profile development projects, including Atlantic Yards, Hudson Yards and the Cornell Tech campus, and by initiating the response to areas of the city hit hardest by Hurricane Sandy. In his next chapter, Mr. Pinsky will spearhead RXR Realty’s Emerging Markets platform, which aims to identify growth opportunities in New York City and the surrounding metropolitan area. Mr. Pinsky, who joined RXR last month as executive vice president, spoke with The Commercial Observer last week at the developer’s Midtown offices and spent time discussing his tenure at the EDC and his new role.
Lease of the Week
It’s not uncommon to hear Manhattan’s real estate market characterized as sophisticated or complex.
Not every day, however, does a requirement as straightforward as Dentsu McGarryBowen’s uncork such an elaborate and interconnected series of transactions as it did at the Starrett-Lehigh Building.
A longtime tenant in the 2.3-million-square-foot building and one of the property’s largest users, the advertising firm needed to expand. But there was a small problem: Despite its size, the building—an artsy, far West Side location popular among creative tenants—had virtually no available space.
A year into owning the Starrett-Lehigh Building, RXR Realty is making what at first appeared a dicey gamble into an investment that looks closer to a sure thing.
RXR, led by its chief executive Scott Rechler, acquired the 2.3 million-square-foot far West Side office building last year for a whopping $900 million, a purchase price that equated to almost $400 per square foot. Though buildings in Midtown have traded for double that or more on a per square foot basis in recent months, the sheer magnitude of the investment turned heads as a jumbo-sized commitment in a neighborhood that many brokers and tenants still consider off the beaten path.
Hot on the heels of RXR Realty’s purchase of the Starrett-Lehigh Building for $900 million and the sale of 111 Eighth Avenue to Google for $1.8 billion, Bed Bath & Beyond’s building is on the block.
A partnership of Joseph Chetrit and Yair Levy, spearheaded by Charles Dayan from Bonjour Capital, bought the building for $289.8 million in 2005, according to city records. But with the trendy Chelsea office market enjoying a boom, driven in no small part by the tech bubble, the building could sell for around $500 million, according to some sources.
1330 Sixth Avenue
There’s a certain fearful symmetry in putting “hedge fund” and “1330 Sixth Avenue” in one sentence. But it seems that both are having a moment.
Andor Capital Management, a technology hedge fund manager based in Greenwich, Conn., has signed a five-year deal to occupy a portion of the 5,875-square-foot 24th floor. Lloyd Read More
No building has mirrored the economic ups and downs like the aptly named Financial Times building.
Now in a sign that a comeback may indeed be upon us, RXR Realty is about to score their first new deal since taking over 1330 Avenue of the Americas, The Observer has learned. Artisan Partners is in the final stages of Read More
A Little Bird Told Us
Twitter, the Web’s main repository of personal oversharing, political dissent and tasteless self-promotion, is donning a suit and tie.
The little blue bird has been perching in a spartan temporary New York City space since September, searching for the perfect spot for its first New York City headquarters. Now The Observer has learned that Read More
Before SL Green bought it in 2006, the REIT formerly known as Reckson Associates had a strong presence in the city. After that sale, however, the company, now known as RXR Realty, pulled back from Manhattan and, instead, focused on New Jersey, Westchester and Long Island. But as executive vice president and managing director Bill Elder, Read More