The Real Deal New York

Will MSG’s real estate assets become separate company?

Dolan family mulls splitting property holdings and sports operations

The Dolan family is considering dividing Madison Square Garden into two separate companies – one for the company’s real estate assets and the other for its concert and sports operations. The newly created property-centric company could qualify as a real estate investment trust, sources told Bloomberg News.

“You don’t need for instance the team to own the stadium, so if private-equity comes in there you could easily do a sale-leaseback,” Maxim Group LLC analyst John Tinker said.

MSG owns, among other things, the New York Knicks and New York Rangers.

The Alliance for a New Penn Station, a coalition of the Municipal Art Society and the Regional Plan Association, suggested last week that Madison Square Garden move to a United States Postal Service mail-sorting facility on Ninth Avenue, as previously reported. The arena moved to its location between West 31st and 33rd streets, near Eighth Avenue, in 1963. [Bloomberg News]Mark Maurer