American Realty Capital New York Recovery REIT bought a leasehold interest in the newly-constructed 240-room Viceroy New York, located on West 57th Street between 6th and 7th Avenues in New York City’s Manhattan borough for US$148 million.
The Boston-based REIT also purchased a preferred equity interest in an institutional-quality office building at 123 William Street in the Financial District of Manhattan for US$40 million.
The hotel is set to open on October 9 and will be managed by Viceroy Hotel Group, Los Angeles.
“Once these pending acquisitions are closed our total portfolio, at cost, will approach $1 billion, with approximately 90% of our portfolio — by purchase price — concentrated in Manhattan. Additionally, we are excited to add our first hotel asset,” said Michael Happel, American Realty Capital New York Recovery REIT CIO.
