New York Times Tower Leaseback Plan May Disappoint
Bloomberg reports: The New York Times Company may have missed its chance to cash in on its Manhattan headquarters.
The media company's plan to raise up to $225 million by selling its portion of the 52-story skyscraper and paying rent to stay there may come too late, said Dan Fasulo of Real Capital Analytics, a real estate research service in New York.
"Buyers do have a certain appetite for leasebacks," Fasulo said in an interview. "The problem is that debt markets are still tied up. It doesn't matter how many willing buyers you have, if there's no debt available, the deal is not going to happen at a price that the New York Times will be happy with."
Sale prices for midtown Manhattan offices rose from an average $352 per square foot in 2004 to $752 in 2007. They averaged $826 per square foot in 2008, according to Real Capital, even as sales virtually halted in the fourth quarter.
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Posted by: Matthew Stone