NEW YORK CITY- Newton, MA-based REIT Government Properties Income Trust (GOV) confirms to GlobeSt.com that they have acquired 305 East 46^th Street, a 17-story building that is 100% leased to the United Nations, for $114 million from Extell Development Company. David Blackman, president and COO of GOV says the REIT acquired the 187,060 square foot building on Friday, but announced the deal yesterday. “We like this building,” he tells GlobeSt.com. “Based upon our conversations with the UN, we feel like they will stay at this property for a long time. It’s a good acquisition for the company.”

According to a statement from GOV, the $114 million acquisition price for the site excludes acquisition costs with a GAAP cap rate at 7.1%. The purchase, funded by using cash on hand and drawings under GOV’s revolving credit facility, is the REIT’s first in New York City. The company owns properties located throughout the US, which are majority leased to federal and state government tenants, the REIT says in a statement. As of March 31, 2011, GOV owned 58 properties with 7.1 million rentable square feet.

With more than 10 million square feet in its portfolio, Extell, headed by Gary Barnett, recently acquired 9 West 46^th Street in the Diamond District and is constructing the 34-story International Gem Tower at 47^th Street. Extell did not return a phone call seeking comment to GlobeSt.com.