New York REIT Makes Strategic Move with $325M Refi Package
- Oct 08, 2015
New York REIT Inc. has closed on a $325 million financing for 1440 Broadway, a 25-story, 755,679-square-foot office building near Times Square, the publicly traded REIT, which is the successor to American Realty Capital’s New York Recovery REIT, announced Monday.
“Completing this financing is another accomplishment in our strategic initiatives plan,” Michael Happel, the REIT’s CEO, said. “We remain focused on building a best-in-class Manhattan real estate portfolio for the benefit of all of our shareholders, and we will continue to capitalize on opportunities, including those that benefit our capital structure and liquidity, while executing our strategic initiatives.”
NYRT declined to provide further information or to comment on the transaction.
The building was completed in 1925 and underwent a renovation in 2001. The then New York Recovery REIT bought the building from Monday Properties and the Rockpoint Group in late 2013 for a reported $528.6 million. At that time, Macy’s was the main tenant and about to increase its space there to 197,000 square feet.
Last week, NYRT had announced “a series of governance, strategic and operational actions” aimed at enhancing shareholder value and at narrowing the gap between the REIT’s NAV and its current common share price.
Among these moves was the appointment of Marc Rowan, co-founder and senior managing director of Apollo Global Management, to the NYRT board of directors. Rowan, 53, is also managing partner of Apollo Management LP and on the boards of the general partner of Apollo Global Management, Athene Holding Ltd. (a Bermuda-based insurance holding company), Caesars Entertainment Corp and Caesars Acquisition Co.
Rowan is a member of the Board of Overseers of the University of Pennsylvania’s Wharton School of Business, whence he graduated summa cum laude with a BS and an MBA in finance.
NYRT also plans to appoint two new independent directors in the near future.
Additionally, it announced it has “engaged an advisor to identify and consider potential strategic transactions at the asset or entity level.” NYRT reportedly is continuing to pursue its plan to sell non-core assets in the outer boroughs and is in the process of implementing a joint venture with American Realty Capital New York City REIT Inc.