RXR, Hudson Bay Recapitalize 620 Ave. of the Americas

RXR, through its Office Recovery Fund, and Hudson Bay Capital have partnered to acquire and recapitalize 620 Ave. of the Americas, a 500,000-square-foot office and retail building in Manhattan’s Flatiron neighborhood. The RXR/Hudson Bay joint venture secured a five-year, $320-million loan facility as part of the transaction.

Although historically, the property has been fully occupied with a high-quality tenant base, the bankruptcies of two prominent tenants – WeWork on the office side and retail tenant Bed, Bath, and Beyond – created a vacancy level exceeding 50%. RXR has executed more than 300,000 square feet of new and renewal office leases over the past two years, most recently including Cole Haan and SEIU Local 32BJ.

“This recapitalization, combined with overwhelming tenant demand both in the office and retail market, demonstrates that by applying capital and capabilities to the right asset with the right capital structure, iconic buildings like 620 Ave. of the Americas can thrive in a post-pandemic world,” said Scott Rechler, chairman and CEO of RXR. “We have never wavered in our belief in New York City’s recovery, and this transaction is proof of the city’s continued resurgence.”