REIT Buys 1140 Avenue of the Americas for $180 Million

NEW YORK — American Realty Capital New York City REIT, Inc. (“NYCR”), a public non-traded real estate investment trust (“REIT”), has entered into an agreement to acquire 1140 Avenue of the Americas, a 22-story, 250,000 square foot, Class-A office property located in Midtown Manhattan from an affiliate of Blackstone Real Estate Partners VI L.P. (“Blackstone”) for $180.0 million, exclusive of closing costs. The transaction is expected to close in the second quarter of 2016.

The property is located just a couple of blocks north of Bryant Park and is currently 91 percent leased. The property’s largest tenant is City National Bank.

“We are pleased to announce the acquisition of 1140 Avenue of the Americas, which enjoys a prime central Midtown Manhattan location with diverse and high quality tenants, as well as a recent $85 million capital investment from Blackstone,” said Michael A. Happel, Chief Executive Officer of NYCR. “The property features boutique floor plates, recently upgraded elevators and common areas, with a number of leases below market. This acquisition is consistent with our strategy to acquire institutional quality real estate in prime Manhattan locations.”

Jon Gray, Global Head of Real Estate for Blackstone, commented, “We believe the sale of 1140 Avenue of the Americas is a solid transaction for both parties and marks another successful deal with AR Global.”