One of New York’s biggest property developers is launching a $1bn fund to invest in the city’s distressed office buildings.
Scott Rechler, chief executive of RXR, one of New York’s largest office landlords, is teaming up with Ares Management, an alternative investment manager that has $49bn in real estate assets.
The partners are convinced that a prolonged paralysis in an office market frozen by uncertainty about interest rates and the threat of remote working is now breaking, with many players ready to accept losses to unload or restructure assets.
They are planning to target a sliver of buildings in the middle of the trifurcated market, between the newest towers and the older offices facing obsolescence.
