News Column

NEW YORK REIT, INC. FILES (8-K) Disclosing Entry into a Material Definitive Agreement

July 31, 2014



Item 1.01. Entry into a Material Definitive Agreement

245-249 West 17th Street



On July 29, 2014, New York REIT, Inc. (the "Company"), through its operating partnership, entered into a purchase and sale agreement to acquire the fee simple interest in two contiguous institutional-quality office buildings located at 245-249 West 17th Street in the Chelsea neighborhood of Manhattan. The sellers of the property are 245 West 17th Street Property Investors II, LLC and 249 West 17th Street Property Investors II, LLC. The sellers have no material relationship with the Company and the acquisition will not be an affiliated transaction.

Pursuant to the terms of the purchase and sale agreement, the Company's obligation to close upon the acquisition is subject to certain conditions customary to closing. Although the Company believes that the acquisition of the property is probable, there can be no assurance that the acquisition will be consummated. The purchase and sale agreement contains customary representations and warranties by the buyer and sellers.

The contract purchase price of the property is $335.0 million, exclusive of closing costs. The Company was required to make a $33.5 million nonrefundable deposit upon the execution of the purchase and sale agreement. The Company intends to fund the purchase of the property through available cash on hand and borrowings under the Company's revolving credit facility.

The property contains approximately 282,000 rentable square feet and is 99% leased. The property's largest tenant is Twitter, Inc., which represents 75% of annualized cash rental income. The remaining two tenants are Room & Board, Inc., which represents 23% of annualized cash rental income, and Flywheel Sports, Inc., which represents 2% of annualized cash rental income.

The following table provides information relating to lease commencement and termination dates, rentable square feet, rental escalations, renewal options and annualized cash rental income for each of such three tenants:

Annualized Cash Lease Lease Rentable Rental Commencement Termination Square Income Rental Renewal Tenant Date Date Feet (in thousands) Escalations Options April 2% annually Two Twitter, Inc. January 2014 2025 214,765 $14.7 million(1) and 10% in five-year April 2020 options 9% every One Room & Board, Inc. January 2014 October 2034 60,062 $4.7 million(2) three years five-year and 15% in option 2026 One



Flywheel Sports, Inc.November 2013May 2024 3,656 $0.3 million 3% annually five-year

option (1) Rent commences between April and August 2015. (2) Rent commences in October 2014.



A copy of the press release announcing the Company's entry into the purchase and sale agreement to acquire the property is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.


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Source: Edgar Glimpses


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