NEW YORK CITY—American Realty Capital New York City REIT, Inc. has closed on its acquisition of 570 Seventh Ave., for $170.3 million. The seller reportedly was a joint venture between the Carlyle Group and Capstone Equities, which paid $83 million for the property last year. GlobeSt.com was unable to reach the joint venture parties by press time.
Located in Times Square, the 21-story class B asset features approximately 170,000 rentable square feet and is 76% leased as of the acquisition date. The property's largest tenants are NY Loves Us, Inc. and Klestadt & Winters, LLP.
The deal went into contract last month. Conditions of the deal included NYCR entering into a short-term lease with the seller for 33,000 rentable square feet, which boosted the property's occupancy from approximately 56% leased.
"We are pleased to have closed on our purchase of 570 Seventh Ave., which is located at the southern edge of the Times Square bowtie,” says Michael Happel, president of NYCR. “This property presents an opportunity to increase cash flow through additional leasing, with boutique office floor plates that will appeal to a wide variety of new tenants, as well as repositioned Seventh Avenue retail frontage and a new, state-of-the-art advertising display system.
The move reflects both ARC's outlook and its property selection prowess, he adds. "We continue to be very bullish on the Times Square submarket and this transaction proves once again our capabilities to acquire solid real estate in great locations."
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
