Latest news with #RXR
Yahoo
2 days ago
- Business
- Yahoo
$1 Billion Power Play: RXR and Liberty Just Made Their Boldest Bet Yet on U.S. Apartments
New York-based RXR is ramping up its credit ambitionswith backing from Liberty Mutualto seize what could be one of the most overlooked financing opportunities in U.S. real estate. The two firms are expanding their long-running partnership to deploy up to $1 billion into apartment loans, zeroing in on senior debt, construction loans, and flexible preferred equity. The timing isn't accidental. A wall of multifamily loansmany originated in 2021 and 2022is coming due just as refinancing becomes harder to secure. RXR's CEO Scott Rechler sees this not as a headwind, but as a "generational opportunity" to step in where traditional lenders are pulling back. Warning! GuruFocus has detected 8 Warning Signs with BSP:HBSA3. This move follows a string of credit plays by RXR, including a $250 million bond raise backed by Liberty and New York Life, and the recruitment of JPMorgan (NYSE:JPM) and H.I.G. alum Steven Schwartz to lead the firm's credit business. RXR originated over $1 billion in loans last year and is positioning to scale that several times over in 2025. The expansion isn't just about scaleit's about optionality. Rechler says the new setup allows RXR to offer borrowers more tailored capital solutions, as owners across the apartment market face rising costs and tighter lending conditions. From an investor's lens, this isn't just another real estate fund ramping up. This is a sophisticated credit strategy designed to plug into the capital vacuum left by risk-off lenders. Liberty Mutual Investments, with over $100 billion under management, has been riding alongside RXR since 2010and doubling down now could signal confidence in the long game. As the refinancing crunch unfolds, RXR's credit arm could become a key player underwriting the next cycle of transitional deals, especially in multifamily markets where flexibility and speed will matter most. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 days ago
- Business
- Bloomberg
Liberty Mutual, RXR Target $1 Billion of Property Credit Deals
New York developer RXR and a unit of Liberty Mutual Group are expanding their credit partnership to deploy as much as $1 billion in the US apartment sector. Their venture will focus on senior loans, subordinate financing, construction loans and flexible preferred equity, according to a statement Thursday.
New York Post
08-08-2025
- Business
- New York Post
This small city has managed to keep rents down since 2020 — and it's a quick train ride from NYC
In a region where rents have skyrocketed since 2020, New Rochelle has pulled off what most New York-area cities can't: keeping rents virtually flat. While median rents in New York City and nearby New Jersey markets have jumped 25% or more in just a few years, this Westchester County commuter hub has seen only a 1.6% increase — and even posted a 2% drop from 2020 to 2023, according to Apartment List. The secret is a decade-long construction blitz. Advertisement New Rochelle, a 40-minute commute from Midtown, has added more than 4,500 apartments since 2014, with another 6,500 planned — a 37% boost to its housing supply. That surge has kept competition in check, even as demand from priced-out Manhattanites grows. 5 New Rochelle, a suburb 40 minutes from Midtown Manhattan, has managed to keep rents in check, rising just 1.6% since 2020 and even dipping 2% between 2020 and 2023, by aggressively building housing. Lucas – 5 Over the past decade, the city has added more than 4,500 units, with another 6,500 planned — a 37% jump in its apartment stock. Bloomberg via Getty Images Advertisement 'They set the playbook, then private developers could come and play,' Scott Rechler, chief executive of RXR, the master developer behind much of the city's new skyline, including the 28-story One Clinton Park, now 92% leased, told the Wall Street Journal. City leaders rewrote zoning rules, streamlined environmental reviews and guaranteed qualifying projects an approval in as little as 90 days. 5 Since 2014, officials have streamlined approvals, standardized zoning, loosened building restrictions and offered tax incentives, attracting $2.5 billion in development and drawing newcomers priced out of New York City. Leon718 – Mayor Yadira Ramos-Herbert says the building spree has paid off beyond rents. Advertisement 'The success of our development has allowed us to be able to invest and explore other opportunities around affordability,' she told the Journal, pointing to infrastructure repairs, food programs and homebuyer assistance funded by developer fees. For newcomers like Aaron Thornton, who traded Manhattan's Upper East Side for a $3,600 two-bedroom with a gym, a lounge and room for his growing family, the math was simple. 'We couldn't have raised or had a baby there, because there's just no space,' he added. 5 Master developer RXR's downtown projects, including luxury towers, have filled quickly and the city requires at least 10% of new units be affordable. Getty Images Advertisement 5 New Rochelle stands on a Metro-North line, offering easy access to and from the city. Getty Images Not all residents are celebrating. Longtime local Karen Hessel calls the changes 'the pains of construction,' citing noise, closures and parking shortages. Others, like activist Shaun Wayawotzki, worry newcomers aren't contributing locally. 'They work in the city, they spend their money in the city and they come back here and they sleep. They're not part of the community.'
CNBC
01-07-2025
- Business
- CNBC
The way to deal with housing shortage is to add more supply, says RXR CEO Scott Rechler
RXR chairman and CEO Scott Rechler joins 'Squawk Box' to discuss his thoughts ont he NYC mayoral race, addressing the housing shortage in the city, and more.
Int'l Business Times
11-06-2025
- Business
- Int'l Business Times
The New York Office Renaissance: Edward L. Shugrue III on Real Estate's Diverging Future
Signs of revival are emerging, although unevenly, across key urban markets after years of uncertainty and dire predictions about the office sector's future following COVID. A recent billion-dollar transaction in New York City, the heart of one of the world's most scrutinized commercial real estate hubs, attests to this, injecting confidence into a sector many had prematurely written off. Edward L. Shugrue III, Managing Director at RiverPark Funds, believes that a resurgence in top-tier leasing activity and high-profile property sales suggests that a more nuanced and perhaps opportunistic landscape is taking shape. He offers expert insights, drawing from decades of experience navigating commercial real estate. Shugrue is a seasoned voice in the field, with over 30 years of experience in the commercial real estate investing, lending, and restructuring sectors. As the Portfolio Manager of a fund comprised of floating rate commercial mortgage-backed securities (CMBS), a $1.8 trillion market, his view into market behavior is granular and strategic. His tenure includes leading roles in the restructuring of distressed assets, pioneering commercial mezzanine finance platforms, and overseeing investment strategies. Known for his analytical rigor and operational expertise, Shugrue has also extended his impact to academic settings, where he has contributed case studies and lectured at leading universities. His foundation in public and private market investment allows him to assess cycles and capital flows with clarity. That clarity is critical, especially in today's commercial real estate environment. The office market, particularly in dense urban centers like New York City, is undergoing a bifurcation. Shugrue has witnessed how the decline in office occupancy during the pandemic led many to believe the sector was in secular decline. He argues that such generalizations fail to capture the real story. "New York is far from dead," Shugrue says. "It's simply a tale of two cities, the top-tier assets that are thriving, and the others that are struggling." Recent news backs this up. The Manhattan commercial office market received a welcome boost with the announced sale of 590 Madison Avenue to Scott Rechler's New York-based RXR. After fierce bidding from an array of well-heeled institutional investors including Tishman Speyer (the owner of Rockefeller Center), one of Manhattan's largest office landlords, SL Green Realty (NYSE: SLG), and global private equity giant Blackstone (NYSE: BX), RXR emerged on top with a price of nearly $1.1 billion. The interest and activity in the property is consistent with increased leasing activity in Manhattan (nearly 12 million square feet of signed leases in the first quarter of 2025) since reaching pandemic lows. Formally known as the IBM Building, this one million square foot gleaming office tower sits prominently at 57th and Madison Avenue, sharing the same block as Tiffany & Co's flagship on Fifth Avenue. It boasts a roster of leading finance and investment firms, including Apollo Global Management (NYSE: APO), which recently signed a 100,000 square foot lease. Asking rents at the property are $190 per square foot. The pending sale is noteworthy for multiple reasons. First, it's the largest sale in Manhattan since Google's acquisition of 550 Washington Street in 2022 for nearly $2 billion. Second, with only $5 billion of Manhattan office sales in 2024, this sale will be a significant contributor to 2025 sales levels. Third, the price translates to over $1,000 per square foot, which, while common pre-pandemic, hasn't been seen here for quite some time. This transaction is on the heels of two large and noteworthy office transactions in 2024. First was the sale of an 11% stake in one of Manhattan's newest skyscrapers, One Vanderbilt, to the Mori Building Company of Japan at an implied valuation of $4.7 billion. Second was Tishman Speyer's $3.5 billion refinancing of their historic Rockefeller Center. Additionally, the Paramount Group, Inc. (NYSE: PGRE) recently announced that it is seeking strategic alternatives to maximize shareholder value for its $8 billion portfolio of Class A office buildings in New York and San Francisco. With 11 Class A towers within New York City, many of which are in midtown on Sixth Avenue, interest is expected to be keen. However, Shugrue notes that while the outlook and tone have been strong, the demand is sharply skewed. Class A properties, those offering premium amenities, prime locations, and modern infrastructure, are experiencing strong interest and competitive bidding. Meanwhile, Class B and C assets, those situated away from central business corridors, are languishing in foreclosure or trading at distressed values. This divergence has become a defining characteristic of the market. "Some assets attract global capital and command prices exceeding $1,000 per square foot. Others, although they're just mere blocks away, are nearly abandoned." The industry expert states that this isn't only a matter of location but of a broader realignment in tenant expectations and investment strategy. Shugrue has observed that the appetite remains strong for Class-A towers offering the right mix of quality, location, and technology. However, buildings that fail to meet these changing standards are being repositioned for alternative uses, most notably residential conversions. These projects signify a shift in how underperforming office assets can be reintegrated into urban spaces. As the 590 Madison Avenue sale and recent robust New York City leasing activity demonstrate, big transactions are back in the Big Apple. However, unlike the pre-pandemic world, the tide is no longer lifting all boats equally. Edward Shugrue's insights are a reminder that discernment is the differentiator in a fractured market. The next wave of opportunity won't emerge from sweeping generalizations about the office market but from a disciplined understanding of where capital, tenants, and cities are headed.
