Worldwide Plaza and American Reality Capital Get It Together

American Realty Capital New York Recovery REIT Inc. closed its deal to acquire an interest in Worldwide Plaza, on Eighth Avenue, between 49th and 50th Streets. 

The deal also closes an unpleasant public chapter in which ARC’s parent was cast a villain.  In fact, at first, the stake purchased wasn’t ARC’s deal.  RXR Realty reportedly had an option to buy a stake of about 40% in the building for about $605 million, and brought in ARC as a joint venturer to help it eventually acquire the entire property for more than $1 billion..

But the deal was struck last month when ARC spoke directly to the Worldwide Plaza’s joint venture ownership.

The seller, WWP Sponsor, LLC, which is controlled by a joint venture consisting of George Comfort & Sons, Inc., RCG Longview, and DRA Advisors LLC, took a much lower amount than had been reported when RXR Realty was involved. 

The official press release says the joint venture retained a 51.1% equity interest.  The ARC fund acquired a 48.9% equity interest for just over $220 million, exclusive of closing costs.

RXR Realty had filed suit to stop the deal, and was briefly successful. But on Oct. 30, a New York state court judge lifted the injunction. RXR Realty vowed to proceed with the lawsuit against ARC for interfering with its deal.

The announcement has the details on the current state of the complex:

Worldwide Plaza was built in 1989 and is comprised of a 49-story office building containing approximately 1.8 million rentable square feet of office space, 30,000 square feet of retail space, a five-stage off-Broadway theater, a 38,000 square foot fitness center and a garage providing 475 parking spaces. Worldwide Plaza is 91% leased to a number of large credit tenants including Nomura Holding America, Inc. and Cravath, Swaine & Moore LLP, a top global law firm.

An ARC officer notes that the acquisition increased the fund’s portfolio value to more $2.1 billion.

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