NEW YORK CITY-Eighteen months after being seized by mezzaninelender Otera Capital, 1330 Ave. of the Americas is changing handsfor about $400 million, the Wall Street Journal reportedMonday, citing unnamed sources. The buyers are a group of investorsled by Long Island-based RXR Realty, which signed a contract on the461,00-square-foot office property over the weekend, according tothe WSJ. A spokesman for RXR confirms that theWSJ report is accurate.


If the purchase price quoted by the WSJ—about $750 persquare foot—is accurate, it would be the second Manhattan officedeal in as many weeks to suggest a return to 2006-era values. Theprice is about 30% less than the $498 million Macklowe Propertiespaid for the 40-story property in December ’06, but well above the$500 per square foot that another former Macklowe tower, WorldwidePlaza at 825 Eighth Ave., sold for last year.


A week ago, reported that Edge Fund Advisors andHSBC Alternative Investments Ltd. had paid $254.8 million for a 49%stake in the office component of 1540 Broadway, once part of theeight-building portfolio that Macklowe acquired from Equity OfficeProperties in early 2007. The deal valued the office portion of thetower at $520 million, just $5 million less than EOP had paid in’06.


This is also RXR’s second direct investment in Manhattan thisyear, and in fact its second since being formed in ’07. This pastspring, it acquired a 49% interest in the 739,000-square-footoffice tower at 340 Madison Ave. for an estimated $279.3 million.At the time, RXR CEO Scott Rechler said in a release now is “theopportune time to be investing in Manhattan, as the leasing marketshave bottomed and are primed for a near-term recovery.”

| will provide more information on the deal as itbecomes available. Click here for the complete WSJ article.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.