American Realty Capital New York Recovery REIT Inc. has paid $10.9 million for the long-term master lease — which has 50 years remaining — on a retail and garage space at 350 Bleecker Street in the West Village, the New York Observer reported.
The off-market deal for the 14,510-square-foot space closed on Dec. 31, partly in order to avoid the impending increase in capital gains taxes, said Cohen Real Estate’s Michael Cleeman, who represented the buyer. Cohen Real Estate’s Vera Thomas represented the seller, an entity affiliated with Time Equities. The seller had owned the property since the 1970s.
The building’s 6,290 square feet of ground floor retail space is fully leased by upscale shoe store JMC Shoes and the only U.S. outlet of European retailer SP Fashions. The 8,220-square-foot below-grade garage can hold up to 150 cars. There are no current plans to alter the property or add new tenants, Cleeman said.
American Realty has been on a buying spree recently; the REIT, headquartered at 405 Park Avenue, spent $124 million in real estate purchases in the last week of 2012, including $112 million for Red Bull’s offices at 218 West 18th Street. [NYO]– Hiten Samtani