NEW YORK CITY-It’s official: American Realty Capital New York Recovery REIT Inc. has closed on a $22.5 million retail deal in Manhattan’s highly sought-after West Village. After entering into contract in September, the REIT has acquired a fee-simple interest in four retail condominiums at the base of RFR Realty’s and Hines’ One Jackson Square, an 11-story, 30-unit luxury condominium at 122 Greenwich Ave.
“This is high-quality retail,” says Michael Happel, chief investment officer and executive vice president for the REIT. Happel tells GlobeSt.com that the deal furthers the company’s strategy to continue acquiring income-producing commercial real estate throughout the five boroughs. “We will be buying a lot more retail, office and even multifamily,” he says. “We are really excited and we plan to add more retail properties to our portfolio similar to this.”
The One Jackson Square portfolio consists of a total of 8,392 square feet, including four retail units containing approximately 7,080 rentable square feet and four basement storage units of approximately 1,312 square feet, according to ARC. Out of the four ground-floor units, 78% of the retail spaces are occupied, with two of the spaces currently leased to TD Bank and one leased to Starbucks. The remaining fourth site is open.
“It is new construction in a beautiful building in a great location,” Happel says. One Jackson Square is situated at the intersection of Eighth Avenue and Greenwich Avenue on the border of Chelsea and the Meatpacking District. The properties are being acquired through the REIT’s $1.5 billion equity fund.
The transaction marks the third retail deal for ARC in the last three months. In addition to One Jackson Square, the company has also acquired a Duane Reade Pharmacy at 163-30 Cross Bay Blvd. in Howard Beach, Queens and a fee-simple interest in four retail condominiums at 416-424 Washington St. in TriBeCa.
Happel predicts that ARC will complete more retail acquisitions of this nature going forward into the new year. “We do have some other things in our pipeline, but we are not ready to announce a specific deal,” he says. “We are definitely continuing to see deal-flow, especially in these types of assets with long-term growth potential.”
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