The American Realty Capital New York Recovery REIT has agreed to acquire the 750,000-square-foot office tower at 1440 Broadway from Rockpoint Group and Monday Properties for $528.6 million.
“We are pleased to be acquiring 1440 Broadway,” said Michael Happel, chief investment officer of NYRR, in a prepared statement. “The Times Square South neighborhood, we believe, has significant long-term potential as the Times Square submarket pushes south and the Bryant Park submarket pushes north.”
Approximately 40 percent of the property’s rental income is derived from investment-grade tenants, according to the statement announcing the sale. The largest tenant at 1440 Broadway is Macy’s, which occupies approximately 27 percent of the building. As reported by The Commercial Observer, Macy’s expanded by 31,700 square feet at 1440 Broadway late last year.
American Realty Capital has been active in New York in recent months. In September, NYRR announced it had agreed to acquire the leasehold interest in the Viceroy Hotel at 120 West 57th Street for nearly $150 million. In a separate transaction, NYRR agreed to acquire a preferred equity interest in 123 William Street for $40 million.
Rockpoint closed on its acquisition of an 80 percent stake in 1440 Broadway for $282.4 million earlier this year, according to The Real Deal.
Eastdil Secured advised Rockpoint Group in the transaction, which was reported earlier by TRD.