RXR Closes $1.5B Manhattan Office Recap

RXR has obtained $1.45 billion in financing to recapitalize 1211 Avenue of the Americas, the Commercial Observer first reported. The nearly 2 million-square-foot skyscraper is the headquarters of Dow Jones, News Corp. and Fox News.

Eastdil Secured advised the company on the transaction and Newmark arranged the financing.

The move comes after RXR acquired a 49 percent stake in the property in January. The firm and co-owner Ivanhoé Cambridge announced plans at the time to reposition the 45-story tower by updating its plaza and lobby, along with adding additional amenities, conference rooms and a wellness center.

According to the Commercial Observer, the recapitalization includes a three-year extension of about $1 billion in debt originated by Apollo Global Management. The loan’s new maturity date will be August 2028, after it had been set to mature in August 2025.

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The outlet also reported that additional uses of the financing include:

• $130 million for tenant improvements for Fox News, leasing commissions and updated bathrooms
• $110 million to re-develop vacant space
• $61 million for capital improvements
• $54 million for enhancements for additional tenants

Leasing around Avenue of the Americas has been strong in 2025, according to Andrew Lim, JLL’s director of New York research. Lim told Commercial Property Executive that the neighborhood’s vacancy rate currently stands below 9 percent—a 2.6 percent decrease year-over-year.

“We are seeing demand increase as other avenues, especially Park, have filled up,” Lim said.

RXR’s Gemini initiative

RXR’s work at 1211 Avenue of the Americas is part of Gemini Office Ventures, a multibillion-dollar investment platform that RXR has been building out alongside partners over the past two years. The venture seeks to acquire (at a post-pandemic discount) and revitalize legacy office buildings in New York City.

In addition to 1211 Avenue of the Americas, Gemini’s initial portfolio also includes 590 Madison Avenue, which includes notable tenants such as Apollo Global Management and LVMH, and The Starrett Lehigh Building, which RXR acquired in 2011 and is partially occupied by Ralph Lauren.

Manhattan office market updates

Manhattan’s office market continues its post-pandemic rebound, according to a report from Newmark.

The island’s availability rate was 16.0 percent at the end of the third quarter, marking six consecutive quarters of decline in availability, after recording a 19.5 percent figure in the first quarter of 2024. Midtown trophy assets, in particular, outperformed the overall market, with a 4.6 percent direct availability figure.

Average asking rents in Manhattan increased $0.61 per square foot from the previous quarter to $76.10 per square foot. This increase was driven by the Midtown South and downtown submarkets, which have recorded year-over-year rent increases of 4.8 percent and 3.8 percent, respectively.