Trending
AR Capital’s NYC REIT to pay Blackstone $180M for 1140 Sixth Ave. leasehold
Fund manager paid $100M to bring the property out of default in 2011
UPDATED: March 24, 10:58: American Realty Capital’s New York City REIT is taking over the ground lease at the 22-story office building at 1140 Sixth Avenue in Midtown.
The firm will pay $180 million to the Blackstone Group for the privilege. The roughly 250,000-square-foot building, part of the Equity Office portfolio, is 91 percent leased, with City National Bank as its anchor tenant, according to a news release.
Blackstone has invested about $40 million in the building since it acquired the leasehold in 2011, when it paid $100 million for a non-performing note on the asset. Its previous owners, Rockpoint Group and Stellar Management (which also invested about $45 million in renovations), defaulted on the office building during the market collapse.
The estate of Sol Goldman owns the land beneath the building.
Eric Anton, David Fowler and Andrew Scandalios of HFF marketed the building.– Ariel Stulberg
Correction: A previous version of this story identified the ground lease’s buyer as New York REIT.