The Daily News’ publisher could soon be the New York Post’s landlord. According to the Wall Street Journal, Mortimer Zuckerman-led Boston Properties was one of at least seven groups that bid for the News Corp. building at 1211 Sixth Avenue in Midtown last week, along with SL Green Realty, Vornado Realty Trust and Tishman Speyer among others.
In June, Beacon Capital, which purchased the building for $1.5 billion in 2006, enlisted Eastdil Secured to market the 2 million square foot building for about $900 per square-foot, in what is widely seen as a test of whether the trophy tower market has returned to peak prices.
“We are pleased with where we are today given the size of this deal and what’s happened in the markets,” said Eastdil CEO Roy March. “The bottom line is pricing will be well in excess of where peak pricing was for this asset in 2006.”
That despite the fact that the building earned 77.4 million in net income in 2010, down from $83.8 million in 2006. However, 175,000 square feet currently being leased for just $48 per square-foot are expiring next year. [WSJ]