Earlier this week, RXR Chairman and CEO, Scott Rechler, discussed recent recapitalizations, each with a common goal: shuffle the capital stack while enabling property owners to implement upgrades or stabilize assets amid higher-for-longer interest rates.
Rechler highlighted RXR’s recent $70 million recapitalization of 530 Fifth Avenue and added: “I have been pretty vocal that, as it relates to office, going through this process wasn’t going to be like 2008 where things were just going to pop back, and that you need to reduce your basis. The concept for us and proactively with our portfolio was to be in a situation where we work with the lenders to effectively position ourselves to come out of this cycle with a better cost basis with a capitalization plan and leverage that reflects the new normal versus where we were before.”
