NYC REIT Buys 1140 Avenue of the Americas

American Realty Capital's New York City REIT, Inc. (NYCR), a public non-traded real estate investment trust that debuted on the NYSE in April 2014, has entered into an agreement to acquire 1140 Avenue of the Americas in Midtown Manhattan for $180 million. BPGL Holdings LLC, an affiliate of Blackstone Real Estate Partners VI L.P., is selling the 22-story Class A office property in a transaction expected to close during the second quarter. Full terms of the deal and representation were not disclosed.

"We are pleased to announce the acquisition of 1140 Avenue of the Americas, which enjoys a prime central Midtown Manhattan location with diverse and high quality tenants, as well as a recent $85 million capital investment from Blackstone," said Michael Happel, Chief Executive Officer of NYCR, in a press release. "The property features boutique floor plates, recently upgraded elevators and common areas, with a number of leases below market. This acquisition is consistent with our strategy to acquire institutional quality real estate in prime Manhattan locations."

Built in 1962, 1140 Avenue of the Americas is located between West 44th and West 45th streets and features three penthouse floors with 5,000 square feet of usable terraces enhanced by Central Park and Bryant Park views. Blackstone originally acquired the tower in 2011 when it bought a non-performing note on the asset for just $98.25 million, at which time the property was nearly 75% vacant. Blackstone repositioned the office tower after purchasing it, adding a new glass façade, new lobby, new elevators, and redesigned mechanicals and infrastructure. The tower is currently 91% leased, with major tenants including City National Bank, Upsilon Ventures, and Aristeia Capital.

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