American Realty Capital Snaps Up NYC Office Building

By Keith Loria, Contributing Editor

1140 Avenue of the Americas, New York City

New York—American Realty Capital New York City REIT, Inc., (NYCR) has acquired 1140 Avenue of the Americas, an institutional-quality office property located in Midtown Manhattan for $180 million, from an affiliate of Blackstone Real Estate Partners VI L.P., exclusive of closing costs.

“This increases our portfolio to a total of six properties with an aggregate purchase price of approximately $700 million,” Michael Happel, NYCR’s CEO, president & secretary, said in a prepared release. “We remain active buyers and expect to continue growing our New York City portfolio.”

The 22-story building consists of nearly 250,000 rentable square feet and was 91 percent leased at the time of the sale. The property’s largest tenant is City National Bank. The building features boutique floor plates, recently upgraded elevators and common areas.

The building is located in the heart of the Bryant Park submarket.

According to Colliers International’s May 2016 NYC Manhattan Market report, leasing was up 8.1 percent in Midtown last month and it remains one of the city’s strongest performers. The average asking price increased to $82.80 a square foot.

“This acquisition is consistent with our strategy to acquire institutional quality real estate in prime Manhattan locations,” Jon Gray, Blackstone’s global head of real estate, said in the release. “We believe the sale of 1140 Avenue of the Americas is a solid transaction for both parties and marks another successful deal with AR Global.”

Image courtesy of Yardi Matrix