Empire State Building needs $660M for makeover

The manager of the Empire State Building wants to finance a $660 million renovation. Peter Malkin of Wien & Malkin, which manages the building, wants investors in Empire State Building Associates LLC to approve the borrowing as the credit crunch makes lending for commercial projects tough. The building, valued at an estimated $2 billion-plus, has a debt of only $61 million, Bloomberg said. The famous building had fallen behind the times in recent years and was filled with small tenants. But as it modernizes, the building is warehousing space for larger tenants. And prices are going up. Rates on new office leases have reached $52 to $63 per square foot, up from $32 to $42 a year ago.