The Real Deal New York

Empire State Realty Trust in talks to buy New York REIT

Investment trust tied to American Realty Capital is valued at $1.75B

October 08, 2014 11:25AM

malkin

From left: Michael Happel (credit: REIT.com) and Anthony Malkin

Empire State Realty Trust, a real estate investment trust that owns the Empire State Building, is among several prospective buyers in talks to acquire New York REIT, which is valued at $1.75 billion.

New York REIT, founded in 2010 and formerly known as American Realty Capital’s New York Recovery REIT, hired Realty Capital Securities and Barclays Capital to serve as advisers in an effort to increase its shareholder value. The REIT went public in April, in a first for a real estate firm that specializes in solely New York City properties. The share price at the time of the debut was $10.70.

Michael Happel, president of New York REIT, said the board of directors are “disappointed and believe the market is undervaluing” its shares.

The REIT owns stakes in 21 commercial properties in the city, including One Worldwide Plaza and 1440 Broadway. [WSJ]Mark Maurer

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