NEW YORK CITY-American Realty Capital New York Recovery REIT closed out the second quarter with an agreement to acquire the fee simple interest in 333 W. 34th St. from SL Green Realty Corp. The purchase price for the 347,000-square-foot office property is $220.3 million, up about $37 million from the $183 million SL Green paid to buy it from Citibank in 2007. NYRR announced the deal Monday morning.
Citibank, which occupied 333 W. 34th as the sole tenant before selling the property to SL Green, vacated after the building changed hands. SL Green put $26 million of upgrades into the 10-story asset and leased it to the Segal Co. (Eastern States) Inc., the Metropolitan Transportation Authority, Godiva Chocolatier and Sam Ash New York Megastores. It is now 100% occupied.
Jones Lang LaSalle's New York Capital Markets team represented SL Green in the deal, which brings NYRR's Manhattan portfolio to more than one million square feet. In a release, NYRR CIO Michael A. Happel says, “This purchase was made below replacement cost, will increase our portfolio asset value to almost $700 million and reflects our continuing efforts to construct a portfolio of premium New York City real estate. We reasonably expect to take advantage of the favorable market opportunities that our dedicated team continues to find and buy strong assets at good prices with favorable financing to grow our portfolio aggressively.”
In March, NYRR acquired the fee simple interest in a Midtown South property, 216-18 W. 18th St., from a partnership of Atlas Capital and GreenOak Real Estate. The off-market deal went for $112 million.
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