NEW YORK CITY — American Realty Capital New York Recovery REIT Inc. (ARC) has entered into a purchase and sale agreement to acquire the fee simple interest in a 166,000-square-foot office building in New York City for $112 million. The property is located at 218 W. 18th St. in the Chelsea neighborhood of Manhattan.
The seller is a joint venture between Atlas Capital Group and GreenOak Real Estate. Last year, Atlas and GreenOak purchased the defaulted loan and subsequently took ownership of the property though a prepackaged bankruptcy restructuring.
Since then, the joint venture has signed lease agreement with Red Bull North America Inc., SAE Institute of Technology Corp. and Yammer Inc. (a subsidiary of Microsoft Corp.) to occupy seven floors of the building. Other tenants at the building, which is 84 percent leased, include Company 3 LLC and SY Partners.
“This acquisition will kick-start 2013 for our fund by adding another institutional-quality office building to our portfolio,” says Michael Happel, chief investment officer of ARC.
The property at 218 W. 18th St. gives ARC its first exposure to the Midtown South submarket known as “Silicon Alley” in exclusive Chelsea. The building has a roster of first-class tenants and has recently undergone a comprehensive renovation.
ARC is a publicly registered, non-traded REIT with a portfolio that includes nearly $500 million in assets.
Founded in 2006, Atlas is a real estate investment, development and management firm. The company’s portfolio includes more than $2.5 billion of real estate assets in New York City, Boston, Washington, D.C. and London.
GreenOak is an independent, partner-owned principal investing and advisory firm. The firm has corporate headquarters in Tokyo, London and New York.
— Brittany Biddy