Building Revenue: NYT Co. Selling ‘Substantial’ Part of Headquarters

By: Joe Strupp

The New York Times building, which the newspaper touted as among its major projects for years prior to its 2007 completion, is now up for sale.

Well, at least part of it.

The Times reports today it “is in advanced negotiations to sell a substantial portion of its 52-story headquarters building on Eighth Avenue in Midtown Manhattan to W. P. Carey & Company, an investment and management firm that specializes in so-called sale-leaseback transactions.

“Under the deal, the Times Company would sell the 19 floors it currently uses in the building but not the 6 floors it leases to other tenants,” the paper added. “The Times Company would continue to occupy and manage its floors and would have the right to buy back the space at a predetermined price when a 10-year lease expires. Designed by the architect Renzo Piano, the building stretches from 40th to 41st Street.”

Times Spokeswoman Catherine J. Mathis, declined to say how much W. P. Carey would pay for the space, any repurchase cost, or a likely rent, the story noted. The company previously said that it was pursuing a sale-leaseback arrangement for up to $225 million and would use the proceeds to repay some of the company?s long-term debt.

?Because we are in continuing discussions, we cannot comment on the status of the sale-leaseback,? Mathis said Thursday.

The story also referenced the newspaper company’s financial problems, stating: “Times Company has been seeking various ways to raise money to pay down its debt. One of its two $400 million revolving credit lines will expire in May, but the company has said that it will not seek to renew the full amount.”

This week, the company also had reached an agreement for a $250 million loan from Mexican billionaire Carlos Slim Hel?, the story added..

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