American Realty Capital New York Recovery REIT Inc.has entered into a purchase and sale agreement to acquire from SL Green Realty Corp. the fee simple interest in an institutional-quality office building located at 333 West 34th Street in Midtown Manhattan. The purchase price for the building is $220.3 million, exclusive of closing costs.
The 10-story property is 100 percent occupied, contains approximately 347,000 rentable sq. ft., and is leased to four tenants: The Segal Company (Eastern States) Inc., The Metropolitan Transportation Authority, Godiva Chocolatier Inc. and Sam Ash New York Megastores LLC.
“This high-quality asset is in excellent physical condition and is fully occupied by four major tenants,” Michael A. Happel, chief investment officer of NYRR, noted in a statement. “This purchase was made below replacement cost, will increase our portfolio asset value to almost $700 million and reflects our continuing efforts to construct a portfolio of premium New York City real estate. We reasonably expect to take advantage of the favorable market opportunities that our dedicated team continues to find and buy strong assets at good prices with favorable financing to grow our portfolio aggressively.”
The Jones Lang LaSalle New York Capital Markets team represented SL Green in this transaction.