In RXR’s “Project Kodak,” Scott Rechler has been dividing his portfolio between outdated “film” assets and modern “digital” assets. Therefore, it should come as no surprise that a building with the Kodak Film Lab as a tenant fit into the former category.
The firm’s Standard Motors Product Building at 37-18 Northern Boulevard in Long Island City traded for $42 million, the Commercial Observer reported. The buyer was Jack Guttman’s Pearl Realty Management.
The sale of the 300,000-square-foot Queens office building breaks down to $140 per square foot. It’s likely a disappointing result for Rechler, which purchased the former automotive parts manufacturing facility for $110 million in 2014.
A Newmark team including Brett Siegel, Dan O’Brien and Adam Spies brokered the sale. RXR declined to comment to the outlet, while Pearl Realty could not be reached.
Other tenants include the Jim Henson Foundation, luxury homebuilder I Grace and luggage maker Rimowa, the latter two of which renewed their spaces about a year ago.
The building’s debt was part of a $343 million portfolio of eight sub-performing loans that Flagstar Financial sold to Loan Star Funds earlier this year at a small discount to par. The $66 million loan tied to the Standard Motors property was issued in 2014, the same year RXR acquired the property.
Pearl Realty has been an active player in New York City real estate, despite not always making a splash with its movement. Last October, the firm picked up a Gowanus office building at 92 Third Street from Samson Management for $29.5 million, or $314 per square foot.
Meanwhile, RXR found what it could describe as a “digital” asset, closing a $1 billion deal for 590 Madison Avenue in the Plaza District with a big private equity loan, representing New York City’s largest investment sale in three years.
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