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ARC New York City REIT to Buy Midtown Manhattan Office Tower for $180 Million

American Realty Capital New York City REIT Inc., a publicly registered non-traded real estate investment trust, entered into an agreement to acquire 1140 Avenue of the Americas in Midtown Manhattan from an affiliate of Blackstone Real Estate Partners VI L.P. for $180 million, exclusive of closing costs. The transaction is expected to close in the second quarter of 2016.

The 22-story class A building totals approximately 250,000 square feet and is located in the heart of the Bryant Park submarket. It is currently 91 percent leased, and the 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 New York City REIT. “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.”

American Realty Capital New York City REIT, which closed its offering in May 2015, invests in properties located in the five boroughs of New York City, with a focus on Manhattan. The company owns five properties totaling 841,900 square feet, which are 89.2 percent leased, with a weighted average remaining lease term of 7.8 years. The five properties include one commercial property, one property consisting of three condominium units (one retail unit, a parking garage and one office unit), one parking garage and two institutional-quality office buildings. The company broke escrow in May 2014 and has raised $754.6 million in investor equity, including DRIP shares.

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