ARC pays $112M to get its toes wet in Silicon Alley
American Realty Capital New York Recovery REIT, Inc. has entered into a purchase and sale agreement to acquire the fee simple interest in an office building lat 218 West 18th Street in Chelsea.
The interest was sold by a joint venture between Atlas Capital Group and GreenOak Real Estate. The purchase price for the building is $112 million, exclusive of closing costs.
Last year, Atlas and GreenOak purchased the defaulted loan and subsequently took ownership of the property through a prepackaged bankruptcy restructuring.
Since that time, Atlas and GreenOak have entered into lease agreements with Red Bull North America, SAE Institute of Technology Corp. and Yammer, a subsidiary of Microsoft, for seven floors of the building.
Company 3, LLC and SY Partners round out the tenant roster at the 166,000 s/f property which is now 84 percent leased.
“This acquisition will ‘kick-start’ 2013 for our fund by adding another institutional-quality office building to our portfolio,” noted Michael A. Happel , Chief Investment Officer of ARC.
“This significant acquisition comes on the heels of the $124.4 million of purchases that we completed at the end of 2012. With this addition, our portfolio nears $500.0 million of asset value. 218 West 18th Street gives ARC its first exposure to the Midtown South sub-market known as Silicon Alley in exclusive Chelsea.
“The building has a roster of first-class tenants and has recently undergone a comprehensive renovation.”
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