New York REIT Inc (NYSE:NYRT), which is selling and winding down following a plan of liquidation, reported that it has finalized a purchase deal in which it plans to sell a 48.7% stake in Worldwide Plaza to a firm managed by RXR Realty LLC and SL Green Realty Corp. for an agreed-to value of the asset of $1.725 billion.
Depending on this value, together with a debt refinancing of the asset that will happen concurrently with the closing, New York REIT will get cash at the closing of around $346.2 million which is net of defeasance cost of $116.5 million, as currently projected and dependent to change prior to closing, and a capital reserve of $90.7 million to conservatively cover prospective future capital and leasing expenses at the asset. As part of the deal, the Purchaser has accepted to place a deposit in escrow of $50 million.
As an outcome of the acquisition, the firm will keep a 50.1% membership stake in WWP Sponsor, LLC and Worldwide Plaza will continue to maintain the 1.2% of the membership stakes in Worldwide Plaza it presently owns.
Wendy Silverstein, the CEO of New York, reported that they are delighted to have the prospect to partner with RXR and SL Green, two of the best operators and owners of real estate in NY City. With their combined investment of expertise and money into Worldwide Plaza they consider this joint venture deal represents the most value increasing option accessible to NYRT and its investors. They look forward to associating with them toward a successful completion of this deal.
New York REIT reported that the deal is anticipated to close on or before November 3, 2017 dependent on the fulfillment of different closing conditions. After the closing of the deal, an affiliate of RXR Realty and SL Green will serve as the exclusive leasing agent and property manager for Worldwide Plaza.