SL Green Realty Corp., New York City’s biggest office landlord, agreed to sell a 10-story building in midtown Manhattan to American Realty Capital New York Recovery REIT Inc. for $220.3 million.
The 347,000-square-foot (32,200-square meter) property at 333 W. 34th St. is 100 percent occupied and leased to four tenants including the Metropolitan Transportation Authority, according to a statement today from American Realty Capital New York, a nontraded real estate investment trust.
“This purchase was made below replacement cost, will increase our portfolio asset value to almost $700 million and reflects our continuing efforts to construct a portfolio of premium New York City real estate,” Michael Happel, chief investment officer of American Realty Capital New York, said in the statement.
Demand for midtown Manhattan office buildings is sending values above the highs before the financial crisis, according to Moody’s Investors Service. Midtown office prices have more than doubled from a low in the fourth quarter of 2009, Moody’s said in a June 12 report.
American Realty Capital New York owned 17 properties that were 94.2 percent leased as of March 31, according to a regulatory filing. The company is sponsored by American Realty Capital, a New York-based operator of nontraded REITs.