AR Capital’s NYC REIT to pay Blackstone $180M for 1140 Sixth Ave. leasehold

Fund manager paid $100M to bring the property out of default in 2011

New York /
Mar.March 24, 2016 08:04 AM

UPDATED: March 24, 10:58: American Realty Capital’s New York City REIT is taking over the ground lease at the 22-story office building at 1140 Sixth Avenue in Midtown.

The firm will pay $180 million to the Blackstone Group for the privilege. The roughly 250,000-square-foot building, part of the Equity Office portfolio, is 91 percent leased, with City National Bank as its anchor tenant, according to a news release.

Blackstone has invested about $40 million in the building since it acquired the leasehold in 2011, when it paid $100 million for a non-performing note on the asset. Its previous owners, Rockpoint Group and Stellar Management (which also invested about $45 million in renovations), defaulted on the office building during the market collapse.

The estate of Sol Goldman owns the land beneath the building.

Eric Anton, David Fowler and Andrew Scandalios of HFF marketed the building.– Ariel Stulberg

Correction: A previous version of this story identified the ground lease’s buyer as New York REIT. 


Related Articles

arrow_forward_ios
Levered and loaded: KKR looks to flex its real estate muscle
Levered and loaded: KKR looks to flex its real estate muscle
Levered and loaded: KKR looks to flex its real estate muscle
NY REIT CEO Michael Weill and board nominee Sharon Stern (AR Global, Cedar Realty Trust)
Activist threatens proxy battle at New York City REIT
Activist threatens proxy battle at New York City REIT
Blackstone secures $1.1B refi on Sun Belt multifamily portfolio
Blackstone secures $1.1B refi on Sun Belt multifamily portfolio
Blackstone secures $1.1B refi on Sun Belt multifamily portfolio
RealSure CEO Katie Finnegan (LinkedIn)
Realogy, Home Partners of America iBuying venture hires first CEO
Realogy, Home Partners of America iBuying venture hires first CEO
Real estate powers Blackstone’s best quarter ever
Real estate powers Blackstone’s best quarter ever
Real estate powers Blackstone’s best quarter ever
Main-MainImage_.psd FT-Thumbnail_.psd
Blackstone to net $4B profit in sale of Vegas casino
Blackstone to net $4B profit in sale of Vegas casino
Blackstone Group's Stephen Schwarzman, KKR's Henry Kravis and Apollo's Leon Black (Getty, Facebook, iStock)
Blackstone, Apollo, KKR take market hit on Evergrande tumult
Blackstone, Apollo, KKR take market hit on Evergrande tumult
The Cosmopolitan of Las Vegas at 3708 Las Vegas Blvd S and Blackstone CEO Stephen Schwarzman (Google Maps, Getty)
Blackstone marketing Cosmopolitan Las Vegas for $5B
Blackstone marketing Cosmopolitan Las Vegas for $5B
arrow_forward_ios

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

Loading...