American Realty Capital's New York Recovery REIT (NYRR), Inc. has acquired a fully-leased office condominium at 34-50 Varick St. in New York City for $90.8 million, or about $573 per square foot, exclusive of closing costs.
The three-story, 158,573-square-foot office loft condo is fully leased to a subsidiary of Spring Studios Ltd., a London-based provider of creative and photography services to international fashion, beauty and luxury brands. The tenant has guaranteed the lease.
Originally constructed in 1910, the seven-story, 234,199-square-foot office building is situated on more than three-quarters of an acre in Manhattan's Tribeca submarket, between Beach and Laight Streets, near the Hudson River and Holland Tunnel entrance. The commercial condo that sold is located on the top three floors, while the remainder of the building is owned by Verizon and houses major communications equipment.
"The purchase of 50 Varick Street further demonstrates our ability to structure, negotiate and close complex transactions at prices accretive to our distribution," said Michael A. Happel, Chief Investment Officer at NYRR. He added, "We believe the buying opportunities in Manhattan and the five boroughs continue to be very attractive, especially as the economy recovers and job growth occurs, and these positive trends place upward pressure on rents."
NYRR is a publicly-registered, non-traded real estate investment trust. In the past two years its portfolio has grown by more than 15 properties, and is now valued at nearly $800 million including announced transactions in its growing pipeline. NYRR is actively looking to acquire high-quality, income-producing commercial real estate in the New York metro area at a discount to replacement and with a value-add potential, according to its website.
Please see CoStar COMPS #2784809 for additional information on this transaction.