NEW YORK CITY—Columbia Property Trust has signed a definitive agreement to acquire the commercial condominium unit in the historic New York Times building, at 229 W. 43rd St., for $516 million. Blackstone Real Estate Partners VI is the seller of the 481,110-square-foot asset, which sits in a 16-story, Class-A office building in the Times Square submarket.

The acquisition is slated to be funded with a $300 million six-month bridge loan and short-term borrowings under Columbia's $500 million unsecured credit facility, which is expected to increase the company's leverage to approximately 39% of gross real estate assets. Currently 98% leased, the commercial unit of 229 West 43^rd Street is expected to have first-year in-place net operating income of approximately $22 million. The acquisition will bring Columbia's portfolio to approximately 69% CBD and 79% multi-tenant and its exposure to high-barrier markets to 52%, all based on annualized lease revenue.

“The addition of 229 W. 43rd St. to our other Manhattan properties will mirror what we have successfully achieved across our portfolio as a whole, and in San Francisco in particular—blending a number of value-add opportunities with more stable assets in high-barrier primary markets,” says Nelson Mills, president and CEO of the Atlanta-based Columbia Property Trust. “Acquiring this iconic property with such strong tenancy and below-market rents at attractive pricing compared with other New York transactions enables us to increase exposure in what will be our second largest market, while spreading out lease maturities and capital commitments.”