Mortgage Observer

American Realty Capital Provides $35M For Newark Buy

Rugby Realty has acquired office building Three Gateway Center in Newark, N.J. with $35 million from American Realty Capital, a source told Mortgage Observer.

Rugby paid $42 million for the 579,000-square-foot building, the source said. NJBiz.com previously reported the sale, but did not provide the financial terms of the deal. The seller was New York-based developer and investor Tahl Propp Equities, according to NJBiz. Read More

Sales Beat

New York City REIT Makes Deal for Hit Factory Retail Condo [Updated]

421 West 54th Street. (Eastern Consolidated)

American Realty Capital’s New York City REIT has agreed to acquire a retail condominium at 421 West 54th Street from Sagamore for $7.25 million, the real estate investment trust announced yesterday. The 12,327-square-foot unit is 100 percent leased to the Gibson Guitar Corporation.

Known as The Hit Factory, 421 West 54th Street once housed a famous recording studio of the same name. The building has since been converted to residential condominiums, where Carmelo Anthony, the New York Knicks’ star forward and soon-to-be free agent, and comedian Tracy Morgan have rented, according to reports. Read More

Lawsuits

Legal Wrangling Over Worldwide Plaza Deal Set to Continue

One Worldwide Plaza

RXR Realty’s legal representation plans to pursue its lawsuit against American Realty Capital and George Comfort & Sons over the sale of Worldwide Plaza, Stephen Meister, attorney for RXR, told The Commercial Observer.

The lawsuit, filed last month, alleges RXR had reached an agreement to buy the 48.9 percent stake in the 59-story, 1.8-million-square-foot tower with American Realty Capital as an investment partner, which included the right to purchase the entire property for a combined $1.35 billion. Read More

Assignments

CBRE Named Exclusive Agent for 218 West 18th Street

218west18th

American Realty Capital New York Recovery REIT has selected CBRE as the exclusive leasing and managing agent for 218 West 18th Street, it was announced today. Gregg Rothkin and Ben Fastenberg of CBRE will continue to market the property.

The building boasts availability on the second and sixth floors, both measuring 13,500 square feet, according to a statement. Ownership is planning to undertake a pre-build of the sixth floor. Read More

ICSC

Retail’s Big Renaissance

cover for web

With more than 50 million tourists running amok each year, consumers feeling recharged, and throngs of foreign retailers streaming in, Manhattan’s prime retail corridors are not only booming—they’re expanding.

High rents and low vacancies in prime corridors are changing the invisible boundary lines that once separated high- and low-end sections of Fifth Avenue, Madison Avenue, Greenwich Village and other retail corridors throughout the city, analysts and real estate brokers claim.

“When these big names and huge chains move into these areas, people just love to follow them,” said Jeffrey Roseman, an executive vice president and principal with Newmark Grubb Knight Frank’s retail division. “They become anchors and magnets to pull others.”

Just as the earlier success of Urban Outfitters and H&M sparked further expansion below 49th Street on Fifth Avenue, and Alfred Dunhill and watchmaker Panerai boosted retail appeal below 57th Street on Madison when they emerged in 2009, aspirational clothing retailers are now doing the same in Greenwich Village. Read More

Mortgage Beat

ARC New York Recovery REIT Inc. Expands in Brooklyn

153 Washington Avenue

American Realty Capital New York Recovery REIT Inc., a non-traded real estate investment program and part of American Realty Capital, is expanding its presence in Brooklyn commercial and residential real estate. The company has announced the acquisition of 50 rental units and a 36-space parking facility at The 163 Washington Condominiums in Clinton Hill, not long after having closed the financing of three retail and office buildings in Sheepshead Bay.

The $31.5 million purchase of the condominium at 163 Washington Avenue increases the total size of the company’s portfolio to $213.1 million, comprised of 12 properties. Read More