NEW YORK CITY — American Realty Capital New York Recovery REIT Inc. (NYRR), a publicly registered, non-traded REIT, has entered into an agreement to acquire a 48.9 percent equity interest in the Worldwide Plaza office tower in New York City. NYRR expects to acquire its stake for $220.1 million, exclusive of closing costs.
The sellers, George Comfort & Sons and RCG Longview, will retain the remaining 51.1 percent equity interest in Worldwide Plaza, located on Eighth Avenue between 49th and 50th streets in Manhattan.
The office tower was built in 1989 and spans 49 stories. The property is comprised of approximately 1.8 million square feet of office space, approximately 30,000 square feet of retail space, a five-stage off-Broadway theater, a 38,000-square-foot fitness center and a 475-space parking garage.
“Worldwide Plaza presents an opportunity to increase cash flow through additional leasing opportunities while generating stable cash flow from its existing strong tenant base,” says Michael Happel, chief investment officer of NYRR. “We are also very excited to partner with George Comfort & Sons and RCG Longview, premier owners/operators of commercial real estate with long track records of success.”
Worldwide Plaza is 91 percent leased, with 82 percent of its rents coming from Nomura Holding America Inc. and Cravath, Swaine & Moore LLP, a global law firm. Nomura Holding America Inc. is the American subsidiary of Nomura Holdings Inc. (NYSE: NMR).
NYRR's existing property portfolio and recently announced acquisitions under agreement, including Worldwide Plaza, bring the REIT’s total holdings to 22 properties with an aggregate purchase price of approximately $1.6 billion, exclusive of closing costs.
“Worldwide Plaza is an important addition to our Manhattan portfolio,” says Happel. “It is a prime example of the type of high-quality Manhattan assets we have targeted for purchase and is consistent with our strategy of buying good real estate with stable cash flows at prices below replacement cost.”
— John Nelson