H&R REIT, an open-ended real estate investment trust, has entered into an agreement to acquire Two Gotham Center in Long Island City, New York for $415.5 million according to a Winnipeg Free Press article. The property represents the first building of the newly built Gotham Center - a 2-block, 3.5 million square foot development that is part of a budding rehabilitation effort in Long Island City. The purchase price equates to an estimated year one, stabilized capitalization rate of 5.85%.
H&R REIT's President and CEO, Tom Hofstedter said: "Considering the unprecedented global demand for superior New York properties, we are thrilled that we were able to enter into an agreement to acquire this trophy asset and secure such exceptional mortgage financing."
Designed by Moed De Armas & Shannon of New York, Two Gotham Center was developed and owned by Tishman Speyer, in a partnership with Square Mile Capital and the Modell family. The recently completed Two Gotham Center tower comprises 661,000 rentable square feet of office space and is 100% leased to the City of New York for an initial term of 20 years with contracted rental escalations of approximately 8% every 5 years.
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