American Realty Capital New York Recovery REIT is to acquire an institutional-quality office building located at 1440 Broadway in Times Square South from a subsidiary of Rockpoint Group.
The purchase price for the building is USD528.6m, exclusive of closing costs.
The 25-storey property is 95 per cent leased and contains approximately 756,000 rentable square feet. Approximately 40 per cent of the rental income from the property is derived from investment-grade rated companies. The largest tenant in the building is Macy's, which occupies approximately 27 per cent of the building.
Michael A Happel, chief investment officer of NYRR, says: "We are pleased to be acquiring 1440 Broadway. The Times Square South neighbourhood, we believe, has significant long-term potential as the Times Square submarket pushes south and the Bryant Park submarket pushes north. This institutional-grade asset is in excellent physical condition and has a high-quality roster of tenants from various industries. This purchase will increase our portfolio asset value to over USD2.1bn, including other recently announced acquisitions. We remain focused on building a first class company with a concentration on New York City real estate. Our team continues to identify and acquire, in our view, strong assets in excellent locations and at good prices, enabling us to grow our portfolio aggressively."
Eastdil Secured acted as a special advisor to Rockpoint in this transaction.