Business Context and Reporting Period
This Form 8-K was filed by American Realty Capital New York City REIT, Inc. on September 9, 2014, reporting an event that occurred on September 5, 2014. The filing details the completion of an asset acquisition by the Company through its wholly-owned subsidiary.
Key Financial Metrics and Transaction Details
- Asset Acquired: Three commercial condominium units (collectively "The Unit") at 400 East 67th Street, Manhattan.
- Purchase Price: $76.0 million, exclusive of closing costs.
- Funding Source: Proceeds from the Company's ongoing initial public offering.
- Property Size: 58,750 rentable square feet.
- Occupancy: 100% leased to three tenants at the time of acquisition.
- Annualized Cash Base Rent: $3,970.0 thousand (sum of tenant rents).
Tenant Composition
| Tenant | Lease Term | Square Feet | Annualized Rent ($000s) | Rent Share |
|---|---|---|---|---|
| Cornell University | Sept 2008 - June 2024 | 29,321 | $2,300.0 | 58% |
| TD Bank, N.A. | March 2010 - Sept 2025 | 3,420 | $894.9 | 23% |
| Quik Park East 67th Street LLC | March 2009 - Nov 2021 | 26,009 | $775.0 | 19% |
Material Changes and Outlook
The primary material change is the addition of the $76.0 million asset to the Company's portfolio. The filing does not provide comparative financial metrics (revenue, profit, cash flow, or margins) for the Company as a whole, as this is a transaction-specific report.
Financing Outlook: The Company intends to seek financing for the Unit after closing from a lender yet to be identified. The filing explicitly states there is no assurance that financing will be secured on favorable terms or at all.
Financial Statements: Audited and unaudited financial statements for the acquired Unit are not included in this filing. They are scheduled to be filed within 71 calendar days, by November 21, 2014.
Investor Verification Checklist
- Verify the final closing costs, which are excluded from the $76.0 million purchase price.
- Monitor the upcoming filing (due by November 21, 2014) for the audited financial statements of the acquired Unit.
- Track the Company's progress in securing debt financing for the asset, noting the current uncertainty regarding terms.
- Review the lease agreements for Cornell University, TD Bank, and Quik Park to confirm the specific escalation clauses and renewal options listed.