American Realty Capital New York Recovery Reit acquires commercial building in Brooklyn
American Realty Capital New York Recovery Reit has closed the acquisition of a commercial building 100 per cent leased to three tenants, Verizon Wireless, Tiger Schulmann's Mixed Martial Arts and Kickboxing and Interboro Consulting, located at 1623 Kings Highway in Brooklyn, New York.
The purchase price was USD13.25m, exclusive of closing costs.
This acquisition increases the total size of the company's portfolio to USD226.4m composed of 13 properties.
"We are pleased to acquire this well-located building in the Midwood neighbourhood of Brooklyn," says Michael A Happel (pictured), chief investment officer of the company. "This acquisition demonstrates our continued focus on acquiring accretive properties in the five boroughs, leased to investment grade and other credit tenants."
The building contains 19,960 rentable square feet. Two of the leases contain rental escalations of 10.0 per cent every five years, and the lease to Interboro Consulting contains a 4.0 per cent annual rental increase. Each lease contains one five-year renewal option. The aggregate annualised straight line rental income for the leased spaces is USD1.1m.
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