Key Takeaways
- • RXR Realty launched the Gemini Office Venture on September 24, 2025, a $3.5B vehicle holding three Manhattan office properties and a slate of new institutional investors.
- • Gemini's portfolio includes RXR's stakes in 590 Madison Ave., the Starrett-Lehigh Building in Chelsea, and 1211 Sixth Ave., the headquarters of News Corp. and Fox News.
- • Backers include The Baupost Group, Criterion Real Estate Capital, Liberty Mutual Investments, Abrams Capital and King Street Capital Management, which all contributed equity.
- • RXR CEO Scott Rechler says institutional investors view office as largely uninvestable, creating an opportunity to buy high-quality assets at attractive valuations.
- • Newmark and Eastdil Secured structured the fund, which allows institutional office owners to contribute legacy holdings in exchange for liquidity and an interest in a diversified portfolio.
Summary
RXR Realty has launched the Gemini Office Venture, a $3.5 billion vehicle that combines three Manhattan office properties owned by RXR with capital from a group of new investors, according to the firm's release. The venture is led by RXR CEO Scott Rechler, who described Gemini, or "Project Gemini," as the culmination of RXR's postpandemic office strategy of investing in buildings he calls "digital" while exiting those with no future, which he calls "film" assets.
RXR contributed its stakes in 590 Madison Ave., which it recently acquired for more than $1 billion in a deal with Elliott Investment Management, the Starrett-Lehigh Building and 1211 Sixth Ave. The Baupost Group, Criterion Real Estate Capital, Liberty Mutual Investments, Abrams Capital and King Street Capital Management all contributed equity to the venture. Gemini and Elliott bought 590 Madison from the State Teachers Retirement System of Ohio last month, financed with a loan of nearly $800 million from Apollo Global Management.
RXR bought a 49% stake in 1211 Sixth Ave., the headquarters of News Corp. and Fox News, in January and later extended the nearly $1.1 billion CMBS loan tied to the tower, agreeing to spend $300 million with co-owner Ivanhoe Cambridge on building upgrades. RXR's firm paid $920 million in 2011 for the 2.2 million square foot Starrett-Lehigh Building in Chelsea, which RXR says it and co-investors recapitalized for $1.1 billion. The building is popular with fashion tenants such as Ralph Lauren.
In the release, Rechler said that "with one of the largest structural realignments of the office market in decades, institutional investors have generally found office to be an uninvestable asset class," creating what he described as an opportunity to invest in high-quality properties at generationally attractive valuations. Newmark and Eastdil Secured advised on structuring the fund, which RXR says is designed to let institutional office owners contribute legacy holdings in exchange for liquidity and an interest in a high-quality, diversified portfolio.
RXR contributed its stakes in 590 Madison Ave., which it recently acquired for more than $1 billion in a deal with Elliott Investment Management, the Starrett-Lehigh Building and 1211 Sixth Ave. The Baupost Group, Criterion Real Estate Capital, Liberty Mutual Investments, Abrams Capital and King Street Capital Management all contributed equity to the venture. Gemini and Elliott bought 590 Madison from the State Teachers Retirement System of Ohio last month, financed with a loan of nearly $800 million from Apollo Global Management.
RXR bought a 49% stake in 1211 Sixth Ave., the headquarters of News Corp. and Fox News, in January and later extended the nearly $1.1 billion CMBS loan tied to the tower, agreeing to spend $300 million with co-owner Ivanhoe Cambridge on building upgrades. RXR's firm paid $920 million in 2011 for the 2.2 million square foot Starrett-Lehigh Building in Chelsea, which RXR says it and co-investors recapitalized for $1.1 billion. The building is popular with fashion tenants such as Ralph Lauren.
In the release, Rechler said that "with one of the largest structural realignments of the office market in decades, institutional investors have generally found office to be an uninvestable asset class," creating what he described as an opportunity to invest in high-quality properties at generationally attractive valuations. Newmark and Eastdil Secured advised on structuring the fund, which RXR says is designed to let institutional office owners contribute legacy holdings in exchange for liquidity and an interest in a high-quality, diversified portfolio.
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