ARC NYRR Grabs Manhattan Office Condo for $91M
- Jul 10, 2013
American Realty Capital New York Recovery REIT Inc., has acquired a three-story office condominium located at 50 Varick St. in the Tribeca neighborhood of Manhattan for $90.8 million.
“We remain focused on income-producing assets in New York City. This transaction further demonstrates our ability to structure on- and off-market transactions in the City,” Michael Happel, the non-traded REIT’s chief investment officer, told Commercial Property Executive. “With the addition of this asset, the fund’s portfolio includes a variety of office, retail, and other assets throughout Manhattan and the surrounding boroughs, with a strong tenant roster featuring names such as Red Bull, Microsoft, Burberry, Starbucks, and TD Bank.”
The space consists of 158,573 rentable square feet, and currently is 100 percent leased to the U.S. subsidiary of Spring Studios out of London for the next 15 years. Spring Studios is a leading provider of creative services to some of the top luxury, fashion, and beauty brands in the world.
It’s been a busy July for ARC NYRR, which earlier this month acquired an office building at 333 W. 34th St. in Midtown Manhattan from SL Green Realty Corp. for $220.3 million.
According to Happel, the addition of this asset brings its portfolio to nearly $800 million, including properties owned and announced for purchase. The REIT will continue its focus on purchasing first-class New York City assets leased to top-quality tenants with yields that are accretive to its distributions.
“We continue to deploy capital in Midtown South as it has experienced dramatic rent growth in recent years and continues to be the beneficiary of high demand from fashion and creative tenants,” Happel added. “The property is now in the final stages of renovation to become a world-class creative office and studio facility. It includes green rooms, photo studios, an art gallery, a rooftop deck and a 20-foot-tall glass curtain wall overlooking the Hudson River.”
Other recent activity by ARC and its affiliates include:
On June 13, CPE reported on RCAP Holdings’ purchase, for an undisclosed price, of First Allied Holdings Inc., of San Diego, an independent broker-dealer financial services business.
On June 3, CPE covered the purchase by American Realty Capital Trust IV of a $1.45 billion portfolio of 986 retail properties from GE Capital — and also on the purchase by American Realty Capital Properties of a GE Capital portfolio of 471 net-lease properties, for $807 million.