ARC NY REIT Buys 123 William St.

NEW YORK CITY—American Realty Capital New York City REIT, Inc. reports it has entered into an agreement to acquire the 123 William St. office tower in Downtown Manhattan for $253 million.

The purchase price for the 545,000-square-foot office building is exclusive of closing costs. The building is currently 81% leased. The property's largest tenants are the State of New York, the City of New York, the United States of America, the Securities Training Corp. and McAloon & Friedman, P.C.

"We are very excited to be adding 123 William St. to our portfolio," says Michael A. Happel, CEO of NYCR. "The property is located in Downtown Manhattan, an important New York City submarket benefiting considerably from recent infrastructure improvements, especially with regard to transportation. The lobby and many important elements of the building have been substantially renovated, and we are acquiring the investment below its replacement cost. “

He adds, “We see an opportunity to create near-term value at 123 William St. through leasing up the remainder of the building and marking below-market rents to current market levels as leases roll."

In November of last year, American Realty Capital New York City REIT completed its acquisition of 570 Seventh Ave. in Times Square for $170.3 million.

At the time of the purchase, the 170,000-square-foot building was 76% leased.