The COVID-19 pandemic made clear that there would be winners and losers in the office market, with premier, well-located, highly amenitized Class A properties positioned to thrive in the post-COVID world, while outdated, commodity assets will face ongoing structural headwinds moving forward.
This distinction drives RXR’s Office Recovery Strategy. With many institutional investors pulling back from the office market, RXR believes valuations for even the highest-quality assets have become highly attractive. Drawing on more than three decades of office experience, RXR is taking a contrarian approach by acquiring top-tier assets at what RXR believes are attractive prices while using our operational expertise to drive long-term value.
This strategy led to the launch of the Gemini Office Venture, RXR’s office growth platform, which closed last month. This multibillion-dollar investment platform enables legacy office owners to contribute their existing holdings in exchange for both liquidity and participation in a diversified, high-quality portfolio, creating a win-win situation that seeks to unlock value while fueling portfolio growth.
To date, the Gemini Office Venture has executed more than $3.5 billion in transactions across three seed assets, 590 Madison Avenue, 1211 Avenue of the Americas and The Starrett-Lehigh Building, underscoring RXR’s conviction that today’s market represents a generational opportunity to invest in first-class Manhattan office properties at compelling discounts to historical pricing.
