NEW YORK CITY—New York REIT has closed on the sale of two properties in Manhattan and one in Brooklyn, totaling $81.8 million. In January 2017, the shareholders voted to approve the REIT's liquidating and winding down, which is proceeding as planned.
New York REIT sold its 306 East 61st St. property, a seven-story, 81,000 square-foot building constructed in 1901 to JMC Holdings for $47 million. Building tenants include Bunny Williams, Newel and Eric Appel, according to Real Capital Analytics.
The property was encumbered by a $19 million mortgage loan which was fully satisfied at the closing. After satisfaction of debt, pro-rations and closing costs, New York REIT received net proceeds of $26.5 million. The selling price was approximately $7 million higher than the company's last reported net assets in liquidation, valued on Sept. 30, 2017.
One Jackson Square was sold to RFR Realty for a total of $31 million. The 8,382 square-foot structure was built in 2008 and its tenants include storefront shops TD Bank, Starbucks and Juice Press, as recorded in Real Capital Analytics.
This property was part of the collateral for New York REIT's cross collateralized and secured loan. The company paid $13 million resulting in a remaining outstanding principal balance on the loan of approximately $41.2 million. After closing costs, debt and the division between the buyer and seller of related property expenses, the REIT received approximately $16.5 million in net proceeds, consistent with the company's reported net assets in liquidation.
The REIT's property at 2091 Coney Island was sold for $3.8 million. It had served as collateral for the $20.2 million loan for 1100 Kings Highway, of which it was part. The obligation required a $4.4 million pay down at closing, as anticipated from the company's net assets liquidated value.
New York REIT entered into three separate contracts to sell property at 416 Washington St., the remaining property at 1100 Kings Highway, and properties located at 350 Bleecker St. and 367-387 Bleecker St., totaling $73.2 million. The properties are collectively encumbered with $42.4 million of mortgage debt that will be satisfied at the closing, expected to occur in the second quarter of 2018.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
