RXR is rolling out a new multi-billion-dollar office investment vehicle, the Gemini Office Venture, with an initial $3.5 billion in asset commitments from a roster of institutional backers that includes The Baupost Group, Criterion Real Estate Capital, Liberty Mutual Investments, Abrams Capital, and King Street Capital Management.
The platform is structured to allow institutional office owners to exchange aging holdings for liquidity and a stake in the aggregated portfolio. Its focus will remain squarely on top-tier assets in New York City, supported by RXR’s vertically integrated operating and development capabilities.
RXR Chairman and CEO Scott Rechler framed the move as the natural continuation of the firm’s post-pandemic office strategy, noting that most institutional capital has avoided the sector amid what he called “one of the largest structural realignments of the office market in decades.” That retrenchment, Rechler said, has opened opportunities to acquire well-located Class A properties at values not seen in a generation. RXR already holds interests in more than 7.5 million square feet of Manhattan office space.
The Gemini Office Venture will launch with three notable properties. Among them is 590 Madison Avenue, a one-million-square-foot tower acquired last year alongside Elliott Investment Management with initial funding from Cale Street Investments. RXR purchased the property from the State Teachers Retirement System of Ohio for more than $1 billion. Renovations are underway to update the lobby and common areas, following the recent completion of a 25,000-square-foot tenant amenity center. Current tenants include LVMH’s North American headquarters and Apollo Global Management. Affiliates of Apollo also provided $785 million in financing for the transaction.
The venture also holds a 49% stake in 1211 Avenue of the Americas, acquired in January. The investment was coupled with more than $1 billion in senior loan financing. The Rockefeller Center-area tower is anchored by Fox and News Corp., which together occupy roughly 55% of the space under leases running through 2042. RXR is upgrading the lobby, street-level areas, and exterior plaza and plans to create a “building within a building” experience during the renovations.
Rounding out the portfolio is the Starrett Lehigh Building, a 2.2 million-square-foot office and retail complex on Manhattan’s West Side. RXR and its partners executed a $1.21 billion recapitalization of the property. Tenants include Ralph Lauren, Witel Communications, and Fashionphile Group. The building features more than 100,000 square feet of amenities, including a 10-story amenity center, food hall, and multiple restaurants.
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