Carlyle Investment Management and Capstone Equities has sold 570 Seventh Avenue, a 20-story office tower south of Times Square, for $170.3 million. They paid $83 million for the property last year. The buyer was American Realty Capital New York City REIT (NYCR).
570 Seventh Avenue contains approximately 170,000 rentable square feet and is currently 56% leased. The property’s largest tenants are NY Loves Us, Inc. and Klestadt & Winters, LLP. As a condition to closing, NYCR will enter into a short-term lease with the seller for 33,000 rentable square feet, which increases the property’s occupancy to approximately 76%.
The high-rise office and retail building was designed by Sugarman & Berger and completed in 1925.
Michael A. Happel, President of NYCR, said in a statement: “We see a very significant opportunity to add value to this property through re-tenanting the building at market rates. Moreover, we expect to renovate the lobby, reposition the retail, upgrade the office and maximize the value of the new digital signage. We are very bullish on the Times Square submarket and particularly this asset.”
Image courtesy Capstone Equities