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SL Green and RXR Acquire JV Interest in New York REIT’s Worldwide Plaza

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New York City-based SL Green Realty Corp., along with RXR Realty, recently revealed that they have signed an agreement to acquire a combined 48.7% interest in Worldwide Plaza, a class A, trophy asset located in Midtown Manhattan. The interest is being sold by New York REIT, which will continue to own the remaining equity with WWP Sponsor LLC, its existing partner.

According to a prepared statement, the transaction, which is expected to be completed in the fourth quarter of 2017 subject to customary closing conditions, values the asset at $1.725 billion.

Worldwide Plaza, developed in 1989, consists of a 49-story, 1.8 million-square-foot class A office tower, a 252,000 retail building with a parking garage, and a large open-air plaza. The property is part of a mixed-use development that encompasses an entire block between 49th and 50th streets and between 8th and 9th avenues. The office building serves as the North American Headquarters for Nomura Holdings Inc. and Cravath Swaine and Moore LLP, as well as other high-quality office tenants including WebMD, WNet.org, the Rubenstein public relations organization and CBS Broadcasting. The retail building features a five-stage off-Broadway theater, a 475-space parking garage and TMPL, a state-of-the-art fitness gym. The complex is 100% leased.

Worldwide Plaza sits at the juncture of Manhattan’s Columbus Circle and Times Square submarkets, and north of the emerging Hudson Yards area. The property features excellent public transportation access, including direct entry to New York’s E and C subway trains, short walks to the B, D, N, Q, R, and 1 lines and the Port Authority Bus Terminal, crosstown bus service and shuttle service to the nearby New York Waterway ferry.

“With convenient access to transit, a slate of top-tier tenants, and a historic reputation, the iconic Worldwide Plaza building is poised for a big future. We look forward to working with NYRT and SL Green to further enhance Worldwide Plaza’s position as a commercial destination in Midtown West,” says Scott Rechler, Chairman and CEO of RXR Realty.

“The acquisition of Worldwide Plaza allows us to expand our footprint on Manhattan’s West Side through investing in a Class A asset that is fully leased to institutional tenants,” says SL Green Co-Chief Investment Officer, David Schonbraun. “We are excited to partner with NYRT and RXR in our efforts to drive value at the property and participate in the growth of this neighborhood.”