NEW YORK CITY—American Realty Capital New York City REIT, Inc. has entered into contract to buy 570 Seventh Ave., a Times Square-area office property, for $170.3 million. According to the Real Deal, the seller was a joint venture between the Carlyle Group and Capstone Equities, which paid $83 million for the property last year.

A 21-story, class B asset, 570 Seventh Ave. has approximately 170,000 rentable square feet and is 56% leased. The property's largest tenants are NY Loves Us, Inc. and Klestadt & Winters, LLP. As a condition to closing, NYCR will enter into a short-term lease with the seller for 33,000 rentable square feet, which increases the property's occupancy to approximately 76%.

"We are pleased to be purchasing 570 Seventh Avenue, located at the desirable southern edge of the Times Square Bowtie," says Michael A. Happel, president of NYCR, which is a publicly traded REIT. "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."