NYC REIT Closes on 570 Seventh Avenue, Renames Building
Lauren Elkies Schram Nov. 19, 2014, 6:30 a.m.
American Realty Capital New York City REIT, a public non-traded real estate investment trust, recently closed on the $170.3 million purchase of 570 Seventh Avenue from Carlyle Investment Management and Capstone Equities. Now the office building is eschewing its Garment Center history with a new address: 200 West 41st Street.
Along with a new address comes a new identity including an entrance on West 41st Street and a multimillion-dollar repositioning including prebuilts to attract TAMI, or technology, advertising, media and information technology, companies, Commercial Observer has learned.
“Today’s TAMI and high-end fashion tenants want a unique building that makes a lasting first impression, which carries through directly into their space,” Newmark Grubb Knight Frank‘s David A. Falk said in a prepared statement. He and colleagues Eric S. Cagner and Jason T. Greenstein were tapped to market the building as of the Nov. 5 closing of the purchase of the building.
Come Jan. 1, the 170,000-square-foot building-wide renovations will commence and the structure will become 70 percent vacant. Current tenants in the building include Fusion Public Relations, InsightExpress and Theatrical Rights Worldwide.
Individual tenant spaces are already undergoing rehabilitation.
The asking rent in the 21-story building is around $60 per square foot, Mr. Cagner said. The floor plates are 8,780 square feet and will feature polished concrete floors, exposed ceilings and cafes to entice TAMI tenants.
Last month, when American Realty Capital announced its agreement to buy the Times Square area building, Michael A. Happel, its president, said in a statement: “We see a very significant opportunity to add value to this property through re-tenanting the building at market rates. Moreover, we expect to renovate the lobby, reposition the retail, upgrade the office and maximize the value of the new digital signage. We are very bullish on the Times Square submarket and particularly this asset.”