New York REIT kicks off “non-core” sell-off with $38M deal

NYC-focused trust says goodbye to Clinton Hill rental building

TRD New York /
Sep.September 10, 2015 09:37 AM

New York REIT’s promised strategy to sell off “non-core assets” appears to be picking up steam after the New York City-focused real estate investment trust announced it agreed to sell a Brooklyn rental building, at 163 Washington Avenue in Clinton Hill, for $38 million.

The 16-story building, built in 2009, features 49 rental units across more than 40,000 square feet of residential space, as well as one commercial unit and 38 parking spaces. New York REIT valued the deal at approximately $914 per square foot and at a capitalization rate of 4.7 percent, the company said Thursday. The buyer was not disclosed.

The deal, expected to close in the fourth quarter, is part of the REIT’s “strategic initiative” to market and divest several non-core assets in Brooklyn and Queens to focus “high quality” properties in its core portfolio. New York REIT CEO Michael Happel announced such plans, as well as the company’s intention to repurchase up to $150 million of its common stock, earlier this year after facing shareholder criticism regarding the REIT’s direction.

New York REIT has also received “substantial interest in the four other assets we have for sale outside Manhattan” as part of its planned non-core asset dispositions, Happel said in a statement. The REIT has retained commercial brokerages HFF and Cushman & Wakefield to market the properties, with HFF brokering the 163 Washington Avenue deal.

The company expects to generate between $120 million and $130 million through the sale of the five non-core assets in Brooklyn and Queens, Happel said in New York REIT’s second quarter earnings call last month. It paid $102 million to acquire the assets it is now looking to divest.


Related Articles

arrow_forward_ios
Industrial REITs have been an outlier in 2020, returning nearly 27 percent (iStock)

As stocks rally, real estate investors try to pick winners

As stocks rally, real estate investors try to pick winners
From left: Empire State Building, One Vanderbilt and 220 Central Park South

REITs: A crystal ball for NYC’s commercial real estate

REITs: A crystal ball for NYC’s commercial real estate
Federal Reserve Chairman Jerome Powell (Getty)

Real estate stocks benefit from second quarter rally

Real estate stocks benefit from second quarter rally
Clockwise from bottom left: 62-60 99th Street in Rego Park, 850-870 Third Avenue in Sunset Park and Square Mile Capital’s Craig Solomon with renderings of 550 Clinton Avenue in Brooklyn (Credit: Google Maps; Getty Images; Morris Adjmi Architects)

These were the top outer borough loans last month

These were the top outer borough loans last month
Rendering of 540 Waverly Avenue

SL Green lends $59M for mixed-use Brooklyn project

SL Green lends $59M for mixed-use Brooklyn project
35 Sidney Place (bottom) and 22 Lefferts Place (top) in Brooklyn

Brooklyn Heights townhouse is priciest Brooklyn contract

Brooklyn Heights townhouse is priciest Brooklyn contract
22 Quincy Street in Brooklyn (Credit: Google Maps)

Salvation Army rings bell on Clinton Hill warehouse sale for $29M

Salvation Army rings bell on Clinton Hill warehouse sale for $29M
257 Washington Avenue and Boaz Gilad (Credit: Google Maps)

Financially strapped Brookland Capital sheds another Brooklyn development site

Financially strapped Brookland Capital sheds another Brooklyn development site
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...