July 23, 2019
New York City REIT Inc. (NYCR) completed the acquisition of the fee-simple interest in two retail condominiums and one commercial condo totaling 60,297 square feet at 196 Orchard St., a Lower East Side residential condo development. NYCR paid approximately $88.8 million.
The property is 100% leased to Marshalls, CVS and Equinox. NYCR is expecting long-term stable cash flow and contractual rent growth from the condos.
NYCR funded $51 million of the purchase with a 10-year loan from Nationwide Life Insurance Company. The remainder was funded through cash on hand.
A Hodges Ward Elliott team of Paul Gillen and Kyle van Buitenen marketed the property sale on behalf of sellers Magnum Management and Real Estate Equities Corp.
“The space is fully occupied by high-quality, experiential tenants subject to long-term leases with contractual rental increases,” said NYCR CEO Michael Weil. “The acquisition includes attractive long-term financing and enhances NYCR’s overall portfolio.”
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