RXR Realty LLC received a $900 million loan to refinance its Starrett-Lehigh Building at 601 W. 26th St. in Manhattan, N.Y., Commercial Observer reported.
The financing, provided by Morgan Stanley and New York Community Bank, pays down $525 million in previous debt from the same lenders from 2013 and funds the property's repositioning, according to the Sept. 14 report.
RXR is redeveloping and leasing retail space on the 2.3 million-square-foot, 20-story building's ground floor with work slated to complete in mid-2019, and is also working on securing two new tenants, the report noted, citing unnamed sources.
According to the report, the landlord has roughly 250,000 square feet of new or expansion leases in the works, which would take the property's occupancy rate to 90% from 76%. It also has a number of undermarket leases that are slated to expire in the next two to three years.
RXR acquired the 1931-built property for $920 million in 2011 and carried out $50 million worth of improvements soon after. RXR then sold a 49% stake in an office portfolio that included the Starrett-Lehigh Building to Blackstone in 2015.
Morgan Stanley and New York Community Bank officials were not immediately available for comment, according to the report.