UPDATED, 11:32 a.m., Mar. 27: Steinway Musical Instruments, the manufacturer behind the classic pianos, has sold its 109 West 57th Street office building to JDS Development, Property Markets Group and Atlantic Investors LLC for $46 million, according to Law360 and a JDS press release. Steinway runs its flagship retail space from the building, between Sixth and Seventh avenues, and under the terms of the sale can operate there rent-free for 14 months after the deal officially closes.
The sale of the building, which has 247,000 leasable square feet, is slated to close in the second quarter. At that time, Steinway will look for new showroom digs in Manhattan, chairman and CEO Michael Sweeney told Law360 in a statement. He said the search should take a year.
“This transaction further strengthens our healthy balance sheet and clears the way for Steinway to focus all of its attention on maximizing the value of the company’s core musical instruments business,” Sweeney said in the statement.
Steinway can also have a four-month extension of its stay in exchange for a fixed rent paid to the owners.
Earlier this month, JDS shelled out $170 million for a full-block site on First Avenue that will be developed into luxury apartments. In January, the firm also paid $200 million to Sheldon Solow for a residential-zoned parcel of land that overlooks the East River. Property Markets Group also looks to erect an 18-story tower on a West Village car wash site. [Law360] –Zachary Kussin