Blackstone sells ex-NYT offices to Columbia Property Trust for $516M

Private equity firm purchased the office condo for $160M in 2011

TRD New York /
Jul.July 24, 2015 08:00 AM

Blackstone Group sold the office portion of the former New York Times building for $516 million to Columbia Property Trust, just four years after purchasing it for $160 million.

The property is a 12-story office condo at 229 West 43rd Street in the Times Square area, in the historic building that housed the New York Times headquarters from 1913 to 2007.

Since its purchase, Blackstone has spent $105 million on renovations and signed major tenants including Yahoo, which is leasing five floors. The condo as a whole is 98 percent leased. In May, it was reported that the private equity giant was looking to sell for $525 million.

The office condo is expected to have a first-year net operating income of $22.3 million, according to a press release from Columbia.

“Acquiring this iconic property with such strong tenancy and below-market rents at attractive pricing compared with other New York transactions enables us to increase exposure in what will be our second largest market, while spreading out lease maturities and capital commitments,” said Columbia CEO Nelson Mills. San Francisco is Columbia’s largest market.

The remaining portion of the building is retail space, which was purchased by Kushner Cos. for $296 million earlier this year.

This week, it was reported that Blackstone is purchasing a residential portfolio from the Caiola family for $700 million. — Tess Hofmann


Related Articles

arrow_forward_ios
From left: Joe Biden, Starwood Capital's Barry Sternlicht, Blackstone's Stephen Schwarzman and Donald Trump (Getty; iStock)

Where real estate’s investment giants stand on Biden vs. Trump

Where real estate’s investment giants stand on Biden vs. Trump
Stuyvesant Town (Getty)

Layoffs at Blackstone’s Stuy Town management firm

Layoffs at Blackstone’s Stuy Town management firm
Brookfield’s Bruce Flatt and Blackstone’s Jonathan Gray

Blackstone and Brookfield are going mall shopping in India

Blackstone and Brookfield are going mall shopping in India
Blackstone's Jonathan Gray and a rendering of 350 Park (Vornado, Blackstone)

Blackstone eyes new 1M sf NYC headquarters

Blackstone eyes new 1M sf NYC headquarters
Blackstone Group president Jonathan Gray (Getty)

The future according to Blackstone: “Less density and a lot less new construction”

The future according to Blackstone: “Less density and a lot less new construction”
Blackstone's Jonathan Gray (iStock, Getty)

Blackstone says goodbye to CMBS fund

Blackstone says goodbye to CMBS fund
Blackstone COO Jonathan Gray and Club Quarters Chicago at 111 W Adams Street (Getty, Google)

Blackstone misses payment on $274M hotel loan

Blackstone misses payment on $274M hotel loan
Blackstone’s Jonathan Gray

TRD Insights: Here’s how much tenants pay for space at Blackstone’s massive industrial portfolio

TRD Insights: Here’s how much tenants pay for space at Blackstone’s massive industrial portfolio
arrow_forward_ios

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

Loading...