Originally Posted in the Commercial Observer
Written By Gus Delaporte
Continuing its prolific buying spree in New York, American Realty Capital New York Recovery has acquired a 48.9 percent equity interest in One Worldwide Plaza for $220.05 million, the real estate investment trust announced today.
“We are pleased to have acquired another high-quality asset and look forward to an important partnership with George Comfort & Sons, Inc., RCG Longview, and DRA Advisors LLC,” Michael Happel, chief investment officer for NYRR, said in a prepared statement. “Worldwide Plaza is located in the Midtown Manhattan office sub-market and features large credit tenants as well as potential additional leasing opportunities. This acquisition increased our portfolio value to over $2.1 billion, including other recently announced acquisitions.”
The deal includes the right to buy the remaining 51.1 percent interest from George Comfort & Sons, RCG Longview and DRA Advisors for a total transaction value of $1.45 billion, according to Crain’s New York.
News of the transaction will come as a blow to RXR Realty, another prolific buyer, which last month filed a lawsuit against American Realty Capital and George Comfort & Sons for $200 million, claiming One Worldwide Plaza’s ownership broke an agreement to sell a stake in the building to RXR.
According to the suit, RXR had reached an agreement to buy the 48.9 percent stake in the 59-story, 1.8-million-square-foot tower with American Realty Capital as an investment partner, which included the right to purchase the entire property for a combined $1.35 billion.
On Wednesday, New York State Judge Shirley Werner Kornreich cleared the way for the sale to American Realty Capital by ruling the transaction could go through.
Built in 1989, One Worldwide Plaza’s tenant roster includes a number of high profile tenants, including Nomura Holdings North America and law firm Cravath, Swaine & Moore. The 49-story property is comprised of 1.8 million square feet of office space, 30,000 square feet of retail space, an off-Broadway theater and a 38,000-square-foot fitness center.
Calls to attorneys representing RXR Realty were not immediately returned.