While BCN's CEO Craig Nassi declined to reveal the total acquisition cost, he tells GlobeSt.com that UBS provided a $265-million acquisition loan, which accounted for more than 90% of the price. As GlobeSt.com previously reported the 21-story building traded at a 5% cap rate in an off-market transaction.
This is the first Manhattan acquisition for the Denver company. Nassi says, "We love the office market in Midtown," and with prime space "running out at a fast pace and new office construction at prime locations is virtually zero," the transaction made sense. BCN has four other properties in Manhattan under contract. Nassi declined to offer more details on any of the deals but says they should all be closed by the end of the year. UBS is also financially backing some of the other deals the company is pursuing.
Credit Suisse First Boston is the building's major tenant, holding a long-term lease on about 82% of the fully occupied building. Nassi says the average rent in the 330,000-sf building is around $65 per sf.
BCN was started in 1993 by Nassi and focuses mainly on creating high-end, mixed-use properties.
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