American Realty Capital New York Recovery REIT acquires Viceroy Hotel
American Realty Capital (ARC) New York Recovery REIT is to acquire a leasehold interest in the newly constructed Viceroy Hotel located on West 57th Street, between 6th and 7th Avenues, in Manhattan.
ARC will also take a preferred equity interest in an institutional-quality office building at 123 William Street in the financial district of Manhattan.
The aggregate cost for the two assets is USD188.5m, exclusive of closing costs.
The 29-story, 240-key Viceroy Hotel was designed by renowned architectural firm, Roman and Williams.
The hotel will be managed by Viceroy Hotel Group, which currently manages luxury hotels in locations including Santa Monica, Miami, Beverly Hills, Snowmass, Anguilla, Abu Dhabi and the Maldives.
The institutional-quality office building located at 123 William Street contains 27 stories and approximately 513,000 rentable square feet.
Michael A Happel (pictured), chief investment officer of NYRR, says, "We are pleased to announce these pending acquisitions of two high-quality Manhattan assets. Once acquired, our total portfolio, at cost, will approach USD1.0bn, with approximately 90 per cent of our portfolio, by purchase price, concentrated in Manhattan. Additionally, we are excited to add our first hotel asset. The hotel is in a prime location and will be operated by what we view as a best-in-class hotel manager, Viceroy Hotel Group."