Calpers, RXR Realty Said in Talks to Buy Manhattan Office TowersBy
California Public Employees’ Retirement System and RXR Realty LLC are in talks to each acquire a midtown Manhattan skyscraper from AXA Financial in deals that would total about $3.6 billion, according to a person with knowledge of the discussions.
Calpers is bidding about $1.9 billion for 787 Seventh Ave., while Scott Rechler’s RXR is offering about $1.65 billion for 1285 Avenue of the Americas, which AXA owns in partnership with JPMorgan Chase & Co., according to the person, who asked not to be identified because the negotiations are private. Talks to acquire the buildings, which are near Rockefeller Center, aren’t final and may not result in a deal, the person said.
Doug Harmon and Adam Spies of Eastdil Secured LLC are marketing the towers. Representatives for the brokerage and Calpers didn’t immediately return calls seeking comment. Representatives for AXA, JPMorgan and RXR declined to comment. RXR’s interest in 1285 Avenue of the Americas was first reported Thursday by the Real Deal, while the New York Post said Calpers was bidding for 787 Seventh Ave.
A sale by AXA would be the second largest in New York this year, behind Blackstone Group LP’s $5.3 billion deal to acquire Stuyvesant Town-Peter Cooper Village apartment complex. The skyscrapers are drawing buyer interest as values for New York City real estate surge amid a flood of capital from foreign and domestic investors. Midtown office-building prices are now 14 percent higher than at the previous peak in 2007, according to research firm Green Street Advisors LLC.
The 54-story skyscraper at 787 Seventh Ave., AXA Financial’s headquarters, was completed in 1986, according to property-data provider Emporis. The tower at 1285 Avenue of the Americas, built in 1960, has 42 floors.
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