Africa Israel to reduce NYT Building debt

TRD New York /
Dec.December 22, 2009 08:45 AM

Africa Israel Investments said today it will cut its debt on the 15-story New York Times Building at 229 West 43rd Street by roughly 60 percent after reaching a deal with its creditors. The developer paid $525 million for the Manhattan property in 2007, taking out $715 million in loans in order to convert the building, where its namesake newspaper was headquartered until 2004, into a mixed-use complex including an upscale hotel, apartments and retail space. The building now stands empty after the economy cratered and the project was abandoned. Africa Israel’s debt stood at $652 million on the property prior to the deal, which will reduce it to $267 million, and provide the company with a credit line of $75 million. The deal stipulates that Africa Israel surrender 50 percent of its rights to the building. The company said it will use another $25 million to develop the property and will pay back the remaining debt within five years. Yesterday, the company reached a deal with its corporate bondholders to restructure $2 billion in debt, which is pending final approval next month. [WSJ]


Related Articles

arrow_forward_ios
229 West 43rd Street and Charlie Kushner (Google Maps, Getty)

Kushner Companies’ Times Square retail condo headed to auction

Kushner Companies’ Times Square retail condo headed to auction
Scale model of Manhattan at Gulliver's Gate (Credit: Getty Images)

Gulliver’s Gate closes at Kushner’s Times Square property

Gulliver’s Gate closes at Kushner’s Times Square property
Court Square Place at 24-01 44th Road in Queens and The New York Times' A.G. Sulzberger (Credit: Google Maps and Getty Images)

All the news that’s fit for Queens: NYT inks lease in Long Island City

All the news that’s fit for Queens: NYT inks lease in Long Island City
In growth mode, Knotel to move HQ to former New York Times Building

In growth mode, Knotel to move HQ to former New York Times Building

In growth mode, Knotel to move HQ to former New York Times Building
Brookfield secures $635M refinancing package at New York Times Building

Brookfield secures $635M refinancing package at New York Times Building

Brookfield secures $635M refinancing package at New York Times Building
Lev Leviev’s son, brother arrested on diamond smuggling charges: report

Lev Leviev’s son, brother arrested on diamond smuggling charges: report

Lev Leviev’s son, brother arrested on diamond smuggling charges: report
Two tenants at Kushner’s Times Square property are showing signs of stress: report

Two tenants at Kushner’s Times Square property are showing signs of stress: report

Two tenants at Kushner’s Times Square property are showing signs of stress: report
Covington & Burlington growing to nearly 200K sf at New York Times building

Covington & Burlington growing to nearly 200K sf at New York Times building

Covington & Burlington growing to nearly 200K sf at New York Times building
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...