RXR Secures $131M in Construction Financing for New Rochelle High-Rise

John Jordan | February 2020

A rendering of RXR Realty’s 26 and 28 Division St. in New Rochelle.

NEW ROCHELLE—Designated developer for the City of New Rochelle RXR Realty has secured a $131.2-million construction loan for its 28-story, mixed-use apartment tower at 26 South Division St. here.

Capital One reported on Feb. 20 that it served as the lead bank for the construction loan for the ground-up development of 26 South Division. The sponsor—RXR Realty—secured a 42-month interest-only floating-rate loan that has two extension options.

26 South Division St. will feature 352 market-rate apartments, ranging from studio to one- two- and three-bedroom apartments with a valet parking garage, lounge, co-working space, speakeasy, and more than 12,000 square feet of retail. An adjoining tower at 28 Division St. is also planned by RXR Realty.

The development is a major component of RXR’s redevelopment plan for the city, which also includes RXR’s 360 Huguenot St. property, which opened this past summer. Construction on 26 South Division St. begin in October 2019, according to RXR Realty’s website.

“At a time when prospective renters face difficult trade-offs between quality housing and ease of commute, New Rochelle is a natural extension of the transit-oriented story that has developed in places like Long Island City, portions of Brooklyn, and Jersey City,” said Prithvi Mohan, a vice president with Capital One’s Commercial Real Estate team which closed the transaction. “We are excited to be part of the broader redevelopment of New Rochelle and proud to be working with RXR, given their expertise and commitment to this market.”

In 2015, the City of New Rochelle and RXR outlined more than 12 million square feet of new development downtown, of which RXR has approximately 2.3 million square feet of development rights. The Downtown Rezoning Plan will include a mix of residential, retail, restaurant, office, hospitality and other institutional space. The rezoning is one of the largest and most significant economic development initiatives in Westchester County history.

Bloomberg first reported earlier this week that Colony Capital, which has offices in New York City and Los Angeles, had sold its more than 27% stake in RXR Realty to Dyal Capital Partners of New York City. No financial terms of the deal were disclosed.

John Jordan
Editor, Real Estate In-Depth