{"id":1004140176,"date":"2016-03-25T01:45:58","date_gmt":"2016-03-25T09:45:58","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004140176"},"modified":"2020-04-08T00:21:02","modified_gmt":"2020-04-08T08:21:02","slug":"new-york-city-reit-to-buy-midtown-manhattan-office-asset","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/new-york-city-reit-to-buy-midtown-manhattan-office-asset\/","title":{"rendered":"New York City REIT to Buy Midtown Manhattan Office Asset"},"content":{"rendered":"

By Barbra Murray, Contributing Editor<\/p>\n

\"1140<\/a>

1140 Avenue of the Americas, New York<\/p><\/div>\n

New York<\/strong>\u2014Slowly but surely, American Realty Capital New York City REIT Inc.’s<\/a> portfolio is getting bigger and bigger. The public non-traded\u00a0REIT will add a quarter-million square feet of office space<\/a> to its collection\u00a0with the acquisition of 1140 Avenue of the Americas in Manhattan. NYCR just signed on to pay BPGL Holdings LLC, an affiliate of Blackstone Real Estate Partners VI LP<\/a>, $180 million for the Class A asset.<\/p>\n

Oh, what a difference five years\u00a0can make. Blackstone snapped up\u00a01140 Avenue of the Americas\u00a0in 2011 for just $98.25 million, having acquired the loans secured by the 250,000-square-foot\u00a0building from a consortium of banks led by Landesbank Baden-W\u00fcrttemberg. Originally developed in 1926, the property has seen its share of owners over\u00a0the last 10 years, beginning with SL Green Realty Corp., which sold the\u00a0asset to Stellar Management and Rockpoint Group for\u00a0$97.5 million in 2006. A few years later, the\u00a0office building\u00a0fell into the hands of\u00a0 Landesbank Baden-W\u00fcrttemberg.<\/p>\n

Located in Midtown Manhattan’s Bryant Park neighborhood, 1140 Avenue of the Americas\u00a0has a lot going for it today,\u00a0including a recent $85 million capital investment and a respectable occupancy level. The 22-story tower is 91 percent leased and counts\u00a0City National Bank\u2014which occupies roughly 30,000 square feet under a lease scheduled to expire in 2023\u2014as its largest tenant. Ultimately, NYCR plans to increase the value of the asset by capitalizing on\u00a0below-market leases. Midtown’s Class A office property segment closed 2015 with an average asking lease rate of $66.96 per square-foot, according to a report by ABS\u00a0Partners Real Estate.<\/p>\n

NYCR expects to fund the acquisition of 1140 Avenue of the Americas with\u00a0financing and cash on hand yielded from its\u00a0initial public offering, which closed in May 2015.<\/p>\n

“We believe the sale of 1140 Avenue of the Americas is a solid transaction for both parties and marks another successful deal with AR Global,” Jon Gray, Global Head of Real Estate for Blackstone, said in a prepared statement. Indeed, Blackstone and AR Global\u00a0entities have\u00a0executed\u00a0more than a few transactions together. Among the most notable deals was\u00a0Blackstone’s $2 billion joint venture purchase<\/a> of a\u00a0group of 71\u00a0shopping centers\u00a0from American Realty Capital Properties (now VEREIT) in\u00a02014.<\/p>\n

If all goes as planned, NYCR and Blackstone will complete the 1140 Avenue of the Americas transaction\u00a0in the second quarter of this year. With the purchase of the building, NYCR will have increased\u00a0the number of assets in its portfolio to six, and\u00a0pushed the\u00a0total square footage\u00a0over the\u00a01 million mark.<\/p>\n

Image courtesy of Iu + Bibliowicz Architects LLP<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

American Realty Capital NYC REIT will pay $180 million to acquire the Manhattan office asset from an affiliate of The Blackstone Group.<\/p>\n","protected":false},"author":969,"featured_media":1004140216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21825,21783,1600,21742,10,21747],"tags":[],"class_list":["post-1004140176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-finance","category-investment","category-new-york","category-latest","category-northeast","category-office"],"acf":[],"yoast_head":"\nNew York City REIT to Buy Midtown Manhattan Office Asset - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/new-york-city-reit-to-buy-midtown-manhattan-office-asset\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New York City REIT to Buy Midtown Manhattan Office Asset\" \/>\n<meta property=\"og:description\" content=\"American Realty Capital NYC REIT will pay $180 million to acquire the Manhattan office asset from an affiliate of The Blackstone Group.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/new-york-city-reit-to-buy-midtown-manhattan-office-asset\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-03-25T09:45:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-08T08:21:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/03\/114031.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"932\" \/>\n\t<meta property=\"og:image:height\" content=\"538\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Barbra Murray\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/new-york-city-reit-to-buy-midtown-manhattan-office-asset\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/new-york-city-reit-to-buy-midtown-manhattan-office-asset\/\",\"name\":\"New York City REIT to Buy Midtown Manhattan Office Asset - 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