American Realty Capital New York Recovery REIT, Inc. has closed on the acquisition of the fee-simple interest in the condominium known as The 163 Washington Condominiums, located at 163 Washington Avenue in Brooklyn, New York, for $31.5 million, exclusive of closing costs.

citybiz real estate previously reported on this transaction.

The 163 Washington Condominiums in Brooklyn to Sell for $31.5M (August 23, 2012)

The asset features 50 rental units and a 36-space parking facility. The 50 rental units are 80.2 percent leased.

The 50 rental units contain 41,613 rentable square feet and include 49 residential rental units and one commercial unit leased to a day care company. In addition, the property contains 20 storage units.

The day care company's lease is for 10 years and commences upon the completion of certain conditions. The annualized straight line rental income will be approximately $47,000. The lease contains 3% annual rental increases and has two five-year lease extension options. Due to zoning restrictions, the unit may only be leased to an educational or healthcare-related tenant.

The 36-space parking facility is currently under a two year master lease with the seller of the property. The annualized straight line rental income under the master lease is $0.2 million.

The aggregate annualized straight line rental income for the occupied units is approximately $40,000 per unit and the average monthly base rent, calculated as the monthly base rent divided by the number of occupied units, is approximately $3,000 per unit.

American Realty Capital New York Recovery REIT, Inc. is a publicly registered, non-traded real estate investment program. This acquisition increases the total size of American Realty Capital New York Recovery REIT’s portfolio to $213.1 million comprised of 12 properties.