NEW YORK CITY— An affiliate of RXR Realty has closed on the $1.65 billion acquisition of 1285 Ave. of the Americas from AXA Financial and some institutional investors. RXR also signed a long-term lease renewal with UBS to keep its North American headquarters in the 39-story, 1.8 million-square-foot office building in Midtown.

Financing for 1285 Ave. of the Americas was provided to RXR by AIG and Morgan Stanley, with $1.1 billion of acquisition financing and an additional $100 million future funding facility.

UBS agreed to a long-term lease extension, securing its occupancy in more than 900,000 square feet of space through June 2032. The building also serves as the global headquarters for the law firm of Paul, Weiss, Rifkind, Wharton & Garrison, which occupies approximately 550,000 square feet, and the global headquarters for BBDO, part of the Omnicom Group, a marketing and corporate communications company. BBDO has approximately 325,000 square feet of space in the building.

Doug Harmon and Adam Spies of Eastdil Secured were the sales brokers and represented the seller. AXA was advised by AXA Investment Managers–Real Assets while the institutional investor sellers were advised by J.P. Morgan Asset Management.

Bob Alexander, Patrick Murphy and Douglas Lehman of CBRE—together with Wall Street Realty Corp. (UBS's Real Estate Broker subsidiary)—represented UBS in its lease negotiation. Fried Frank acted as counsel to RXR Realty and C&K Properties in their acquisition and it represented UBS in its lease renewal.

The team from the industry law firm included real estate partners Robert Sorin, Meyer Last and Jennifer Yashar, along with real estate associates Cyril Touchard, Candice Pueschel and Diana Smirnov. Ralph Herzka of Meridian Capital Group represented the buyer in securing the financing.

Located between 51st and 52nd Streets, 1285 Ave. of the Americas is a Class-A mixed-use tower featuring office, retail, and storage. RXR plans to upgrade the building's lobby, modernize the elevator mechanical systems and make improvements to the plaza.

“We are excited to close on the acquisition of 1285 Ave. of the Americas and simultaneously execute a long-term renewal with UBS,” says Scott Rechler, chairman and CEO of RXR Realty. “It is only fitting that one of the city's most prestigious buildings will remain the home to some of the city's most prestigious companies for decades to come.”

Financing for 1285 Ave. of the Americas was provided to RXR by AIG and Morgan Stanley, with $1.1 billion of acquisition financing and an additional $100 million future funding facility.

Instant Insights /

RXR Closes on Midtown Office Purchase

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