NEW YORK CITY-American Realty Capital New York Recovery REIT said late Friday afternoon that it had closed on its previously announced acquisition of a leasehold interest in Viceroy New York, a newly constructed hotel on West 57th Street, from Ark Investment Partners. The purchase price for the 240-key property, which opened last month, was $148.5 million.

“We are pleased to have completed the acquisition of the Viceroy Hotel,” says Michael Happel, NYRR's CIO, noting that the deal adds the first hotel asset to the REIT's portfolio, “which is now over $2.1 billion, including previously announced acquisitions that are closed or under contract. The Viceroy is located in a prime Midtown location that we believe will only get better with time. We are thrilled to be working with both the Viceroy Hotel Group as manager of the hotel and the Gerber/Murphy Group as operator of the Kingside Restaurant.”

In September, GlobeSt.com reported that NYRR had acquired the Viceroy leasehold along with 123 William St., the latter a Downtown office tower that NYRR and joint venture partner East End Capital paid $40 million to take over from the Chetrit Group. Happel told GlobeSt.com at the time that the partnership bought 123 William because "we see a great opportunity to reposition the building and create value by investing capital to improve the building and lease it up. Also, we believe this property will benefit from the ongoing transformation of Downtown Manhattan from a '9 to 5 market' into a '24/7 market.' ”

The 29-story Viceroy, which includes the new Marc Murphy and Gerber Group restaurant at street level, was designed by architectural firm Roman and Williams. Viceroy Hotel Group manages luxury hotels in locations including Santa Monica, Miami, Beverly Hills, Snowmass, Anguilla, Abu Dhabi and the Maldives.