American Realty Capital New York City REIT Buys Midtown Manhattan Office Building for $180 Million
American Realty Capital New York City REIT Inc., a publicly registered non-traded real estate investment trust, purchased 1140 Avenue of the Americas in Midtown Manhattan for $180 million. The seller, BPGL Holdings LLC, is an affiliate of Blackstone Real Estate Partners VI, a private fund that specializes in real estate investments.
1140 Avenue of the Americas is a 250,000-square-foot, 22-story class A office building located in Midtown Manhattan’s Bryant Park neighborhood. The property is currently 91 percent leased to numerous tenants including City National Bank and Waterfall Asset Management.
“We are pleased to announce that we have closed on the acquisition of 1140 Avenue of the Americas. This increases our portfolio to a total of six properties with an aggregate purchase price of approximately $700 million,” said Michael Happel, chief executive officer, president and secretary of NYCR. “We remain active buyers and expect to continue growing our New York City portfolio.”
The acquisition was funded with a combination of cash and mortgage financing. The company entered into a loan agreement with Ladder Capital Finance I LLC for $99 million in connection with the acquisition. The loan, which has an interest rate of 4.109 percent, requires monthly interest payments, with the principal balance due on July 6, 2026.
American Realty Capital New York City REIT invests in properties located in the five boroughs of New York City, with a focus on Manhattan. The company closed its initial public offering in May 2015, and has raised a total of $760.1 million in investor equity, as of March 31, 2016.
