RXR signed a letter of intent to purchase 590 Madison Avenue, a one-million-square-foot office property in the heart of Midtown Manhattan, for $1.1 billion. This would mark the first office sale in New York City to exceed the $1 billion threshold in nearly three years. Commercial Observer noted that Rechler expressed a preference for investing in office buildings now, citing what he referred to as “the extraordinary value reset” in commercial real estate.
“That’s been an opportunity for us, because when you have that sort of dislocation, most institutions find office to be an uninvestible asset class,” said Scott Rechler, Chairman and CEO of RXR. “And, when institutions find something uninvestable, that’s a good time to invest because that means you have less competition.”
