NEW YORK CITY — American Realty Capital New York City REIT (NYCR) has acquired a 170,000-square-foot office building in Times Square for $170.3 million. The institutional-quality office property is located at 570 Seventh Ave.
NYCR plans to enter into a short-term lease with the seller, Carlyle Investment Management and Capstone Equities, for 33,000 square feet. The property’s occupancy rate will stand at 76 percent once this lease transaction is completed. Other notable tenants include NY Loves Us, Inc. and Klestadt & Winters LLP.
The property is situated near a variety of Times Square’s retail and restaurant options. They include H&M, The Gap, Sephora, Duane Reade, Express, AMC Theaters, Aerosoles, Wolfgang’s Steakhouse, Carmine’s, Heartland Brewery, The Counter and Red Lobster, among others.
“We are pleased to be purchasing 570 Seventh Avenue, located at the desirable southern edge of the Times Square Bowtie,” says Michael Happel, NYCR’s president. “We see a very significant opportunity to add value to this property through re-tenanting the building at market rates. Moreover, we expect to renovate the lobby, reposition the retail, upgrade the office and maximize the value of the new digital signage. We are very bullish on the Times Square submarket and particularly this asset.”
NYCR is a public, non-traded real estate investment trust. It invests in high-quality commercial real estate located within the five boroughs of New York City, with a particular focus on Manhattan.
— Nellie Day