The Real Deal New York

American Realty Capital to pay $335M for NYC Twitter HQ

Savanna property includes 12-story office tower and six-story mixed use building next door
July 31, 2014 09:40AM

American Realty Capital’s New York REIT is set to purchase Twitter’s Manhattan headquarters in Chelsea for $335 million from Savanna Capital Partners, according to an 8-K filed with the SEC by the purchaser.

The property includes a 12-story office tower at 245-249 West 17th Street, as well as the six-story mixed use building next door, and totals roughly 282,000 rentable square feet. Twitter is the building’s largest tenant, but Room & Board, Inc. and Flywheel Sports are also located there. Together, those three tenants occupy about 85 percent of the property.

Average rent at the building, which was listed for sale earlier this summer, is $70.38 per square foot. The entire building was recently gut renovated.

“The fact that Twitter, one of the world’s most prestigious technology firms, chose this property as its New York headquarters demonstrates the importance of this location and further testifies to the institutional quality of the property itself,” said Michael Happel, the president of NYRT.

ARC’s planned purchase is one of multiple deals the company has done in the city over the last year — including the acquisition of 1440 Broadway for $529 million last October. The company has planned to spend $1 billion on commercial real estate in Manhattan.

Adam Spies and Doug Harmon of Eastdil Secured marketed the building, along with Eastern Consolidated’s Brian Ezratty. — Claire Moses