American Realty Capital NYC REIT Grabs 59 KSF Commercial Condo
- Sep 10, 2014
American Realty Capital New York City REIT Inc. has just acquired the 58,800-square-foot Laurel Commercial Condominiums at 400 E 67th St. on Manhattan’s Upper East Side. NYCR purchased the asset from Prudential Real Estate Investors in a transaction valued at $76 million.
The Laurel Commercial Condos consist of three fully leased units within the 30-story The Laurel residential condominium building, which was developed by the Alexico Group in 2008. Cornell University, a tenant in the tower from Day One, calls the 29,300-square-foot office space home, while TD Bank N.A. occupies the 3,500-square-foot retail space. The remaining commercial segment consists of a 26,000-square-foot parking garage leased to Quik Park. All three tenants occupy space under long-term lease agreements, with the earliest scheduled for expiration in 2021.
The Laurel acquisition dovetails perfectly with NYCR’s strategy of snapping up high-quality New York City properties that provide durable income and appreciation potential. Following those guidelines in June, the REIT purchased a 12,300-square-foot commercial condo unit at The Hit Factory Condominium at 421 W. 54th St. in Midtown. NYCR shelled out nearly $7.3 million for the property, which is 100 percent occupied by Gibson Guitar Corp.
NYCR relied on proceeds from its ongoing initial public offering to fund both acquisitions—and there are more to come. “Our New York City REIT is currently raising $750 million of equity to be invested in New York City commercial real estate,” a spokesperson told Commercial Property Executive.