REIT in contract for retail in Greenwich Village, Howard Beach

September 22, 2011 09:54AM

Real estate investment trust American Realty Capital New York Recovery REIT entered into contract on two New York City properties for $36.5 million, the trust announced today.

The first acquisition is a portfolio of four retail condominiums at the base of One Jackson Square, the 30-unit luxury condo at 122 Greenwich Avenue at the intersection of Eighth Avenue. Two of the units are leased to a TD Bank, one to a Starbucks and the final space is vacant. In total they comprise 7,080 square feet of rentable space. The acquisition is expected to close in November.

The second acquisition is that of a free-standing Duane Reade pharmacy in a 9,767-square-foot free-standing building at 163-30 Cross Bay Boulevard in Howard Beach, Queens. The building was built in 2008. The acquisition is expected to close in September.

The REIT launched in late 2009, and commenced its initial public offering. It plants to offer up to 150 million shares of publicly registered, non-traded stock at a purchase price of $10 per share. It plans to use the funds, of up to $1.5 billion, to acquire commercial real estate in the city. As The Real Deal previously reported, the trust’s first acquisition was a seven-story office building at 306 East 61st Street in Lenox Hill.

Michael Happel, chief investment officer and executive vice president of the trust, said in a statement the acquisitions announced today would bring the total portfolio to about $120 million. — Adam Fusfeld