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New York REIT Announces $135M Sale of 50 Varick Street Condo

50 Varick St. in Tribeca 50 Varick St. in Tribeca

NEW YORK CITY—New York REIT has sold its office condominium property at 50 Varick St. in Tribeca to Italian real estate investment firm Est4te Four for $135 million.

The sale of the three floors or approximately 150,000 square feet of the seven-story building was the first trade since NYRT’s shareholders adopted a plan of liquidation in January whereby NYRT is liquidating and winding down and seeking to sell its assets to maximize shareholder value.

Officials with Est4te, which has offices in New York City, could not be reached for comment at press time.

50 Varick St. was part of the collateral for New York REIT’s $760-million cross collateralized and secured loan provided by Credit Suisse in December 2016. In connection with the sale, the company paid down $78.1 million of debt as required under the loan. After satisfaction of debt, pro-rations and closing costs, the company received net proceeds in the sale of 50 Varick St. of approximately $49.1 million, New York REIT reports.

The Cushman & Wakefield team that represented New York REIT in the transaction that calculated out to $900-a-square-foot included Adam Spies, Doug Harmon, Kevin Donner and Adam Doneger. The property is fully leased to Spring America, the U.S. arm of London-based Spring Studios.

Cushman is also marketing four other New York REIT properties (the West Side Collection) for sale: 256 West 38th St., 229 West 36th St., 218 West 18th St. and 245 West 17th St, which total approximately 715,000 square feet.

In June New York REIT reported it acquired the remaining 49.9% interest in Worldwide Plaza, a mixed-use 2.05-million-square-foot building on Eighth Avenue between 49th and 50th streets for $276.7 million.

In March, the company appointed Wendy Silverstein, a former EVP and co-head of acquisitions and capital markets for Vornado Realty, as its CEO. The firm at that time also transferred external advisory duties to Winthrop REIT Advisors.

New York REIT will announce its second quarter 2017 results tomorrow at the market close.

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