REAL ESTATE: Rechler ventures into Manhattan

REAL ESTATE

Before you think of Scott Rechler as solely an suburban commercial property owner, take a look at his latest deal: Rechler's Uniondale-based RXR Corp. has taken what Rechler calls his first step back into the canyons of New York City.

RXR announced earlier this week that it has signed a deal to buy a 49 percent stake of 340 Madison Ave., one block from Grand Central Terminal, in a $273-million deal, from D.E. Shaw Group. Broadway Partners will retain a 51 percent interest in the property.

In 2007, then Reckson Associates Realty Corp. sold six of its premium city office buildings and some additional property in Westchester and Connecticut to SL Green Corp. Rechler then formed RXR Corp. and retained Reckson Plaza and the Omni Building, both in Uniondale. It looked as though Rechler and Manhattan were done.

But Rechler said in an interview that his firm is making its way to the Big Apple.

"We're going to be very focused" on New York City property, Rechler said. "Eighty percent of our investment activity will be in New York City in the next three years."

"We see strong, positive value" in the city, Rechler said. The depressed New York City market is poised for a big comeback, he said. "It seems the right place to be in the cycle is to be active on the investment front."

Bill Elder, senior managing director of Cushman & Wakefield's strategic agency service group in Manhattan, said Rechler has picked an opportune time to return to city investments.

"This is a very attractive time to buy real estate" in the city, Elder said. "I think they'll make a very successful integration back into the city. Scott's always in the middle of something. He's a creative guy."