Published On: Mon, Aug 4th, 2014

Schorsch and Kahane to Acquire Twitter’s Chelsea Offices for $335 Million

245-249 West 17th Street

Nicholas Schorsch and William Kahane’s American Realty Capital’s New York REIT is set to acquire Twitter’s New York offices in Manhattan’s Chelsea neighborhood for $335 million. The seller is Savanna Capital Partners.

In January, Twitter signed a lease through 2025 for 214, 765 square feet of space between the two buildings making them its largest tenant.

The location includes two buildings: 245-249 West 17th Street, a 282, 000 square foot 12 story office tower and a six story mixed use property next door between Seventh and Eighth Avenues. They were built in 1902 and 1909 respectively.

Savanna’s web site states that 245-249 has collaborative, open architecture, restored hardwood floors, exposed soft loft ceilings and articulated westerly views. It also has a stunning new lobby, new elevators, new windows and new building systems such as air conditioning, sprinklers, communications and plumbing. It offers tenants an accessible roof deck with breathtaking city views.

Rents in the buildings are averaging a little over $70 per square foot.

Other tenants there include Room & Board, Inc., a furniture retailer, and Flywheel Sports, an upscale indoor cycling studio. 2, 800 square feet of ground floor space remains available for leasing by a retail outlet.

The buildings are located just around the corner from Google’s New York offices on Eighth Avenue.

Michael Happel, president of New York REIT, said in the statement. “The fact that Twitter, one of the world’s most prestigious technology firms, chose this property as its New York headquarters demonstrates the importance of this location and further testifies to the institutional quality of the property itself. We are confident that these buildings, located in New York City’s epicenter of creativity, technology and style, will add significant value to our growing, first-class Manhattan portfolio.”

Savanna paid just paid just $75.8 million for it less than two years ago. They spent $29 million on renovations.

The deal was signed last week and the parties expect to close by the end of August.

Nicholas Schorsch is chairman and chief executive officer of the New York REIT, which first listed its shares on the New York Stock Exchange in April.

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