Midtown Landmark Shift: Extell and RXR Secure Major Interest in Worldwide Plaza
SL Green closes a deal to sell its 25 percent stake in Manhattan's Worldwide Plaza to Extell and RXR, reshaping the ownership of the 2M SF office complex.
By: AXL Media
Published: Feb 24, 2026, 8:12 AM EST
Source: Information for this report was sourced from Bisnow
A New Chapter for the Eighth Avenue Giant
Manhattan’s skyline is seeing a major shift in institutional control as Extell Development and RXR move to acquire a combined 25 percent stake in Worldwide Plaza. The interest was sold by SL Green Realty Corp., the city’s largest office landlord, which has been strategically divesting certain assets to bolster its balance sheet. This deal places Extell and RXR alongside the majority owner, New York Community Bank (formerly New York Community Bancorp), in managing one of the most recognizable towers on the West Side.
The 50 story skyscraper, located at 825 Eighth Avenue, encompasses nearly 2 million square feet of Class A office space. While the financial terms of the specific stake sale were not immediately disclosed in full detail, the move is seen as a high stakes play by Extell’s Gary Barnett and RXR’s Scott Rechler. Both firms are known for their aggressive management of iconic New York assets and their ability to navigate complex recapitalization efforts in a volatile interest rate environment.
Navigating the CMBS Watchlist and Tenant Transitions
The ownership change occurs at a sensitive time for the property. Worldwide Plaza’s $940 million commercial mortgage-backed securities (CMBS) loan was recently placed on a servicer watchlist. This designation followed the news that the law firm Cravath, Swaine & Moore, a long term anchor tenant, would be vacating its massive footprint to move to the newly developed Hudson Yards. The departure left a significant vacancy that the new ownership group must now aggressively market.
Lenders and market analysts have been monitoring the property’s debt service coverage ratio, which has been pressured by the rising costs of financing and the loss of premium rent. The entry of Extell and RXR is expected to provide a "fresh set of eyes" and potentially new capital to fund the tenant improvements necessary to attract modern occupiers who are increasingly seeking amenity rich, "trophy" office environments.