Scott Rechler isn’t any stranger to monumental office-to-residential conversion initiatives in Manhattan. Within the Monetary District, nevertheless, the developer is attempting one thing very completely different.
RXR filed plans this week to transform a part of 61 Broadway into housing, the New York Enterprise Journal reported. The plans had been submitted to the Division of Buildings on Monday.
Fairly than remodel the whole lot of the 670,000-square-foot workplace property, RXR plans to redevelop solely a single flooring of the constructing. The ninth flooring will unfold 21 residences throughout 20,000 sq. toes of residential area, together with a motorbike room and a lounge. CetraRuddy Structure will design the area.
The developer didn’t return the publication’s request for remark.
RXR bumped into bother at 61 Broadway a few years in the past. In December 2022, RXR went into default on the property when it stopped making funds on the mortgage, which it took out in 2019. The mortgage had a two-year preliminary time period and three one-year extensions, reaching maturity default in Could 2023.
Months later, JLL listed for sale a $240 million nonperforming mortgage on the troubled Monetary District workplace constructing. RXR had agreed handy the keys again by way of a deed in lieu of foreclosures if obligatory, however by no means did so.
At the moment, the workplace area was solely 57 % occupied. In 2019, versatile workspace supplier Knotel leased 60,000 sq. toes throughout 4 flooring, however filed for bankruptcy two years later.
The mini-project is a pointy distinction to a different RXR conversion that would show to be one of many greatest in New York Metropolis.
RXR, Marc Holliday’s SL Inexperienced and Marc Rowan’s Apollo World Administration are planning to transform the 38-story workplace constructing at 5 Instances Sq. into up to 1,250 units of housing, principally studios, of which 25 % could be reasonably priced.
The challenge is predicted to get 467m, a property tax break earmarked for office-to-residential conversions the place no less than 25 % of items are designated reasonably priced; it will be eligible for a 90 % exemption for 35 years if building begins earlier than June 2026.
This summer time, Corebridge Institutional Investments provided a $561 million loan for the event.
