ARC Buys Legendary Retail Condo

NEW YORK CITY—American Realty Capital New York City REIT has announced that its operating partnership has entered into a purchase and sale agreement to acquire a commercial condominium unit at the Hit Factory—a legendary recording studio—for $7.25 million. Located at 421 W 54^th St. and owned by Sagamore 54th St. Investments LLC and Sagamore Arizona LLC—the property contains approximately 12,327 rentable square feet and is 100% leased to Gibson Guitar Corp.

Superstars like Michael Jackson, John Lennon, Paul Simon and the Rolling Stones produced some of their finest music at the Hit Factory. Eastern Consolidated's senior director Adelaide Polsinelli exclusively marketed the retail condominium, for which the asking price was  asking price is $8.7 million. The retail condominium features 8,787 square feet on the ground floor, with 34 feet of frontage facing 54th Street and 3,540 square feet of usable lower level space.

“This offering is the perfect mix of real estate and rock-and-roll," Polsinelli says. “Whether you're a rock-and-roll aficionado or real estate investor, this is an inflation-proof asset with a long-term net-leased tenant.”

Situated on the north side of 54th Street between 8th and 9th avenues, the building was converted to residential use after the studio closed its doors in the late 1990s. During the time of the Hit Factory though, hundreds of famous albums, including “Born In the USA,”  “Graceland” and “Songs In The Key Of Life”were recorded. Though the music studios of the Hit Factory are long gone, the neighborhood remains home to other media industry giants such as CBS, the Daily News, Avatar and several other television, entertainment and recording studios.

The retail condominium features 8,787 square feet on the ground floor with 34 feet of frontage facing 54th Street and 3,540 square feet of sellable lower level space. Gibson recently signed a 10-year net lease for the space.