NEW YORK CITY-RXR Realty is under contract to acquire a controlling stake in 620 Ave. of the Americas, a 700,000 square foot trophy building currently occupied by TJ Maxx, Marshalls and the Bed, Bath & Beyond flagship store.

The building is valued under the deal at $500 million. A joint venture between YL Real Estate, the Chetrit Group and Bonjour Equities, which bought into the building for $290 million in 2005, according to data from Real Capital Analytics, is selling the stake to an RXR affiliate. The deal affords RXR the option to acquire the remaining interest at a later date.

RXR EVP and managing director William Elder, tells GlobeSt.com that its enthusiasm in the building was bolstered by the creative class that has been so active of late. “The whole creative class story has been of interest to us since we reemegred in New York 18 months ago,” Elder says. “We also loved the bones of the building.”

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Those bones include roughly 152,000 square feet of contiguous space on the sixth and seventh floors, which Elder says will be redeveloped, most likely with a creative tenancy in mind. “It’s got all the earmarkings for that type of tenancy--high ceilings, great lighting, varied slab heights and the ability for some terraces,” he says.

It’s also slightly gritty, which he thinks might appeal to this type of tenant. RXR is in talks with consultants regarding the redevelopment of the vacant space and plans will be announced in several months. As for the rest of the mixed-use building, the 200,000 square feet of retail space is fully leased. There is currently an additional 500,000 square feet of office space and 278,000 square feet of development rights. 

Earlier this summer, as GlobeSt.com reported, the company acquired the nearby Starrett-Lehigh building for $920 million. Eastdil Secured represented the seller in both transactions. Elder says that, given the proximity between the two buildings, he anticipates some type of interplay--whether with leasing or shared property management services.

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