Non-traded REIT American Realty Capital New York City REIT (NYCR) has recently added three commercial condominium units to its portfolio. The units, which are called the Laurel Commercial Condominiums, are located at 400 East 67th Street in Manhattan’s Upper East Side neighborhood.
The three condos were sold by USPF IV Laurel Retail Owner, L.P. for $76.0 million, exclusive of closing costs. NYCR funded the acquisition with proceeds from its initial public offering, which began in April 2014.
Together, the units contain a total of 58,750 rentable square feet and are 100% leased. Existing tenants include Cornell University, which represents 58% of annualized cash base rent, TD Bank, N.A., which represents 23% of annualized cash base rent, and Quik Park East 67th Street LLC (“Quik Park”), which represents 19% of annualized cash base rent.
“We are pleased to announce this acquisition as it is consistent with our strategy of purchasing high-quality New York City properties that will generate durable income and appreciation potential for our shareholders,” commented Michael A. Happel, President of NYCR. He continued, “This property is leased to high-quality tenants, is in excellent physical condition since it was recently built, and is in a strategically important location given its proximity to New York-Presbyterian Hospital and several other medical facilities.”
Sponsored by American Realty Capital, NYCR seeks to acquire commercial real estate properties in the five boroughs of New York City, with a focus on Manhattan. According to MTS Research Advisors, the REIT had raised over $63 million through the end of the second quarter.