A New York landlord led by Nicholas Schorsch is set to become the first publicly traded real estate company focused solely on the city when its shares are listed on the New York Stock Exchange today.
New York REIT Inc. has bought properties valued at about $2.7 billion, mostly in Manhattan, since 2010, when it began as a nonlisted real estate investment trust sponsored by Schorsch’s AR Capital. Schorsch is the biggest fundraiser in the nontraded REIT industry. About $350 million in purchases are planned for this year as the company expands its holdings, which include a stake in Worldwide Plaza, a 49-story office tower on Eighth Avenue in Midtown...
New York REIT, which will be listed under the symbol NYRT, has diversified in Manhattan by buying in submarkets that have good growth potential, said Woody Heller, an investment-sales broker at Studley, which arranged the purchase of an office building on West 38th Street for Schorsch’s company.
Among the landlord’s properties is 218 W. 18th St., an office building in midtown south, the area where demand from technology firms has helped tighten vacancies and push up rents. The 166,000-square-foot property is 84 percent occupied.
Buying real estate in New York isn’t without risk. Office-building values in Midtown fell 55 percent from the highs of the commercial-property boom to the bottom in 2009, according to an index by Newport Beach, California-based research firm Green Street Advisors Inc. The gauge has gained back most of those losses, coming within 9 percent of its 2007 peak last month.NYC Landlord Gets Stock Listing in Latest for REIT Empire
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