American Realty Capital New York Recovery REIT (NYRR) announced yesterday its acquisition of an institutional-quality office building located at 1440 Broadway in Times Square South. The property was acquired from a subsidiary of Rockpoint Group, LLC for a purchase price of $528.6 million, exclusive of closing costs.
The property is 25 stories tall and is 95% leased, with approximately 40% of the rental income being derived from investment-grade companies. The building contains 756,000 rentable square feet. Macy’s is the largest tenant, occupying 27% of that square footage.
According to NYRR’s Chief Investment Officer, Michael A. Happel, NYRR’s portfolio’s asset value is $2.1 billion, including all announced acquisitions to date. He added “…we believe [Times Square South] has long-term growth potential as the Times Square submarket expands. This asset is in first-rate condition and has a recognizable mix of investment grade and credit tenants from various industries.” Mr. Happel continued, “Our team will continue to endeavor to identify and acquire strong assets in prime locations and at good prices, enabling us to further grow our New York City real estate portfolio.”