American Realty Capital New York Recovery REIT, Inc. has entered into a purchase and sale agreement to acquire the fee simple interest in an institutional-quality office building located at 229 West 36th Street in Midtown Manhattan at a purchase price of $65 million.
The property contains approximately 149,000 s/f and is 100% leased to seven tenants.
Approximately 70 percent of the property is occupied by three tenants: American Language Communication Center, Inc.; Early Bird Delivery Systems, LLC; and Spectaguard Acquisition, LLC.
“This is the second office building in the Garment District that we have placed under contract in just the last two weeks,” noted Michael A. Happel, chief investment officer of the company.
Earlier this month the REIR paid $48.6 million for 256 West 38th Street.
“We believe this neighborhood is in the early stages of a longer term transformation that will increase rents in the area,ˮ said Happel.
“Our acquisition pipeline remains strong and we continue to identify high quality properties in New York City that are consistent with our overall investment strategy.”
The seller was Real Estate Capital Partners.