RXR Launches Multibillion-Dollar NYC Office Investment Platform

RXR on Wednesday announced the launch of its Gemini Office Venture. The venture invests in premier Class A New York City office that can be acquired at attractive market values and comprises a strategic investment from a consortium featuring The Baupost Group, Criterion Real Estate Capital, Liberty Mutual Investments, Abrams Capital and King Street Capital Management.

“Project Gemini represents the culmination of our post-COVID office strategy and reflects our deep conviction in the New York City office market, which remains unparalleled nationwide,” said RXR CEO and chairman Scott Rechler. “With one of the largest structural realignments of the office market in decades, institutional investors have generally found office to be an uninvestable asset class, creating an opportunity for RXR to invest in high-quality properties at generationally attractive valuations.”

Representing more than $3.5 billion in commitments to date, Gemini’s initial portfolio includes the $1-billion-plus acquisition of 590 Madison Ave., on which RXR and Elliott Investment Management partnered; a $1-billion senior loan financing on 1211 Ave. of the Americas; and a $1.1-billion-plus recapitalization of the Starrett Lehigh Building.

In constituting Gemini and its underlying investments, Newmark served as RXR’s capital advisor and Eastdil Secured served as RXR’s structuring advisor.