RXR Realty sues over failed deal to buy stake in Worldwide Plaza
Oct 16 (Reuters) - RXR Realty LLC, one of the biggest property owners in New York City, initiated a lawsuit on Tuesday over its failed purchase of Manhattan office skyscraper Worldwide Plaza, a court filing showed.
Early this year, RXR agreed to buy a 49 percent stake in Worldwide Plaza from a partnership led by real estate investment firm George Comfort & Sons. It was not immediately clear how much RXR had agreed to pay for its stake in the building.
In papers filed with the New York Supreme Court, RXR said the total valuation of its deal was $1.25 billion. It also had the right to purchase the remaining interest for a total valuation of $1.35 billion.
RXR said in the filing that defendant George Comfort & Sons "sabotaged the lender approval process in order to coerce a termination of the agreement" to favor a superior proposal from American Realty Capital Properties.
RXR was supposed to partner with American Realty to buy the building, the real estate investment firm said, adding that American Realty "misappropriated" the company's confidential financial analysis of the transaction, without which it would not have been possible to submit a superior proposal.
RXR has sought $200 million in damages from the defendants.
George Comfort & Sons and American Realty could not immediately be reached for comment by Reuters outside of regular U.S. business hours.
Worldwide Plaza, which has 1.8 million square feet of space, is located on the full Eighth Avenue block front between 49th and 50th Streets.
The case is RXR WWP Owner LLC vs WWP Sponsor LLC et al, Case No. 653553/2013, New York State Supreme Court, New York County.