After a flurry of investments in Manhattan office towers, RXR realty is now placing a big bet on the suburbs.
Three months ago, after five years as head of the city’s Economic Development Corporation, Seth Pinsky joined RXR as executive vice president and investment manager of the company’s Metropolitan Emerging Market Strategy. Pinsky will direct RXR’s previously announced plan to invest heavily in mixed-use projects in towns such as Hempstead, Long Island, where the company sees much higher growth potential than in the city.
Coming as the Manhattan apartment market reaches historic levels, the move by a company that sold a $6 bilion portfolio ahead of the last market crash because of conditions it considered “too frothy,ˮ is being closely watched by the investment and development communities.
According to Pinsky, the initiative was born both out of belief in the potential of metropolitan towns and out of worry over high prices in Manhattan.“Especially at the high end of the condo market, prices right now are at historic levels. A lot of people are making a lot of money and there clearly is a lot of demand, but demand is not limitless,” said Pinsky. “I don’t want to use the word bubble because it’s a weighted term, but you can be reasonably certain that a run-up like this will be followed by a re-adjustment.”