Liquidation of New York REIT Accelerates
In a $520 million deal, the company sold 1440 Broadway, a LEED Gold-certified office building in Manhattan, to CIM Group. The transaction is accompanied by plans to sell three more buildings, soon after the announcement of yet another disposition, as the company winds down.
By Scott Baltic, Contributing Editor
Interior at 1440 Broadway in Manhattan
As part of its winding down pursuant to a plan of liquidation, New York REIT Inc. has closed on the $520 million sale of 1440 Broadway in New York to CIM Group Acquisitions LLC, the REIT announced. The property was encumbered by a $305 million mortgage loan, leaving NYRT with net proceeds of about $192.9 million after other costs.
In addition, NYRT has entered into separate contracts to sell properties at 306 E. 61st St., One Jackson Square and 350 W. 42nd St. in Manhattan to third-party buyers for a total of $103.1 million. In the aggregate, the three properties are encumbered by about $43.4 million in mortgage debt. Closings in early 2018 are anticipated.
These sales will be to three separate buyers that cannot yet be identified, an NYRT spokesperson told Commercial Property Executive.
Further, in mid-November NYRT announced plans to sell 333 W. 34th St., a 345,000-square-foot Midtown office building, to funds managed by Brookfield. That price is $255 million.
306 E. 61st St. in Manhattan, also known as the Interior Design Building, is fully leased to tenants in the art, antique and furniture businesses. The seven-story property totals 81,082 square feet and is in one of the nation’s wealthiest zip codes, including Midtown East and the Upper East Side.
The retail at One Jackson Square, at 122 Greenwich Ave., is an 8,392-square-foot retail condo at the base of a newly developed, 30-unit ultra-luxury residential condominium at Eighth and Greenwich Avenue in Greenwich Village.
350 W. 42nd St. consists of four commercial condo units totaling 42,774 square feet, including two ground-floor retail units, one storage unit and one parking garage unit. The property is located at the base of The Orion, a newly developed, 58-story luxury residential condominium building on the south side of 42nd Street between 8th and 9th Avenues in Midtown.
A portfolio that’s getting much smaller
With the disposition of 1440 Broadway completed, and four more properties spoken for, NYRT will be down to just nine properties, according to their website. One, a 61,300-square-foot retail property at 1100 Kings Highway, is in Brooklyn; the rest are all in Manhattan.
Those are the new, 29-story, 240-key, four-star Viceroy Hotel; the REIT’s interest in Worldwide Plaza, a 49-story, 1.8-million-square-foot Class A office building at 825 Eighth Ave. in Midtown West; five street-level retail properties; and a parking garage.
Image courtesy of New York REIT
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