RXR continues to restructure office debt in Manhattan, with the latest move a refinancing at 450 Lexington Avenue for $407 million.
The new loan, with the lending efforts led by Morgan Stanley and Bank of America, replaces the $272 million mortgage. And most importantly, this gives RXR more capital on top of the $300 million it's already using to support its redevelopment of the Class A property.
According to RXR, the 40-story tower, which oversees the Grand Central district, is currently in transition to modernize the space for tenants and improve common areas at the building. Some major tenants at 450 Lexington include Davis Polk & Wardwell and Warburg Pincus. Also, the fully leased building holds a weighted average lease term of almost 20 years.
Walker & Dunlop arranged the refinancing on behalf of RXR.
"450 Lexington represents exactly the kind of institutional, transit-oriented asset capital providers are competing for in today's market. Liquidity is firmly in place for best-in-class Midtown product, and the building's long-dated, blue-chip income stream drove significant competition among lenders," Aaron Appel, senior managing director and co-head of institutional advisory at Walker & Dunlop, said in a statement.
"We're proud to have partnered with the sponsor team and delivered a highly successful outcome."
This marks another restructuring for RXR. When it comes to Class A office product in Manhattan, the developer has completed more than 11 million square feet in recapitalizations, coming out to more than $5.4 billion in refinancings since 2023. Perhaps none were bigger than the $1.45 billion recap that RXR landed on its 1211 Avenue of the Americas building that houses Rupert Murdoch's major news brands, as reported by the Commercial Observer in October 2025.
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