Scott Rechler’s RXR has sold its preferred equity stake in three Upper East Side luxury apartment towers to GO Residential Real Estate Investment Trust, a company led by Josh Gotlib and Meyer Orbach. The sale, valued at $339.5 million, was disclosed in filings on the Toronto Stock Exchange and closed on July 31. The transaction was recorded in New York City property records last week.
RXR had originally invested $261 million into the portfolio alongside the Qatar Investment Authority and Macquarie Capital in 2022. That same year, Gotlib and Orbach’s GO Partners acquired the three buildings—One East River Place, and One and Two Sutton Place North—for $850 million. The properties, developed by Sheldon Solow, include over 1.17 million square feet of space with a total of 1,174 apartments.
The buyout coincided with the public debut of GO Residential REIT on the Toronto Stock Exchange. Proceeds from the initial public offering were used to fund the purchase of RXR’s interest in the Lenox Hill towers. In addition to these properties, GO Residential REIT also owns a 408-unit building at 685 First Avenue and the Copper Apartments at 626 First Avenue—formerly known as the American Copper Buildings—which Gotlib and Orbach purchased for $837 million in 2022.
“One of the key drivers behind our recent IPO was to position our balance sheet for future acquisitions by reducing debt and extinguishing all preferred equity in our structure,” said Max Kaufman, chief operating officer of GO Residential REIT.
The value of the three Lenox Hill towers has increased significantly since their acquisition; they were appraised this year at $1.17 billion—a rise of 38 percent from their value at purchase.
“RXR is excited to maintain its partnership with GO Partners on future potential transactions with the new vehicle,” an RXR spokesperson said.
GO Residential REIT announced plans to raise rents to market-rate levels while upgrading units. The firm also intends to pursue additional revenue opportunities by renting out amenity spaces.
