Prospective NYC REIT picks up first building

TRD New York /
Jul.July 09, 2010 01:00 PM

A new company that filed late last year for approval to raise more than $1 billion as a real estate investment trust focusing on New York City commercial properties has made its first acquisition.

Midtown company, American Realty Capital New York Recovery REIT, bought
the seven-story Lenox Hill office property at 306 East 61st Street for
$32.7 million last month, city property records show. The
65,100-square-foot property, known as the Interior Design Building,
specializes in tenants in that trade, and has rents ranging from $24
per square foot to $100 per square foot, according to documents filed
with the U.S. Securities and Exchange Commission. The seller was Urban
Development Partners, based in Midtown, city records show.

The prospective REIT was formed in October 2009 and applied in November
to be structured as a REIT, but has not received approval from the SEC,
federal filings show. It is an affiliate of American Realty Capital,
headed by chairman and CEO Nicholas Schorsch.

The investment company also signed a contract April 14 to buy the
ground lease on two, five-story commercial building at 36 West 34th
Street and 41 West 33rd Street, between Fifth and Sixth avenues, for
$7.5 million, SEC documents show.

The ground lease is currently controlled by ALGM Leasehold II, an
affiliate of Midtown-based real estate investment firm Emmes Asset
Management, and the property is owned by BLDG Management, city records

Aerosoles, the shoe retailer, is the major ground floor tenant in the
buildings. The company pays a rent of about $445,000 per year and its
lease expires in June 2012 with an option to renew.

Nicholas Schorsch, chairman and CEO of American Realty Capital, said
the properties were the first targeted for purchase by the company.

“We are actively looking for more acquisitions in the city,” he said.

There were no brokers on the purchase at 306 East 61st Street, CoStar Group data show.


Related Articles

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Ken Friedman (inset) and the Spotted Pig at 314 West 11th Street (Credit: Google Maps, Getty Images)

Spotted Pig shuts down following sexual harassment settlement

Donald Trump golf club sued over treatment of workers in Rancho Palos Verdes (Credit: Getty Images, iStock)

Trump’s LA golf club accused of violating workers’ rights

Clockwise from top left: 522 West 29th Street, 40 East 75th Street (center), 820 Fifth Avenue, 54 Thompson Street and 220 Central Park South 

These were the five priciest residential listings in NYC last week

A rent-stabilized portfolio in Rego Park, Queens, that sold at a 38 percent discount in November

Managing the rent law aftershocks

Faith Hope Consolo (Credit: Getty Images)

Kept secret by Faith Hope Consolo, brothers probe late broker’s will