REIT Beat

ESRT Exercises Options on 112 West 34th Street and 1400 Broadway

1400 Broadway. (Empire State Realty Trust.)

Empire State Realty Trust has exercised its options to purchase the ground and operating leases at 112 West 34th Street and the ground lease at 1400 Broadway for a total of approximately $734 million in cash, stock and operating partnership units, the real estate investment trust announced today.

The REIT will acquire 112 West 34th Street for $423.6 million. The purchase price consists of $87.7 million of existing mortgage debt, $115.5 million cash and $220.4 million in shares and partnership units. The leasehold in 1400 Broadway will be acquired for $310 million. The price consists of $80 million of existing mortgage debt, $85.5 million cash and $144.5 million in shares and partnership units. Read More

Wired City

Empire State Realty Trust Beefs up Holiday Display

Empire State Building.

The holiday season will be full of color and holiday décor at Manhattan’s tallest buildings thanks to Empire State Realty Trust, Inc.

The Empire State Building, which stands 1,454 feet above Midtown Manhattan, will boast state-of-the-art holiday decorations in its lobby, a full LED light display and holiday concerts for the 2013 holiday season. The Empire State Building will continue the annual lighting of its tower to commemorate Thanksgiving, Hanukkah, Christmas and New Year’s Eve. In addition to the holiday lights, the building will have pianists in the lobby and choir performances on the 80th floor. A full list of holiday events and concerts is available on the company’s website.

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Controversies

Attorney General Reviewing Helmsley Estate Sale

Leona

The New York State Attorney General’s office is reportedly reviewing the Leona M. Helmsley estate’s liquidation of its stake in the properties launched as part of the Empire State Realty Trust REIT last month, which includes the Empire State Building.

The process will begin once the Helmsley estate files a final accounting of the sale Read More

Empire State Building

Empire State Building Goes Public

(Photo: Al Barbarino)

In the end, months of contentious lawsuits, investor squabbles and multiple bids to purchase the Empire State Building didn’t stop Peter and Tony Malkin and the Empire State Realty Trust from going public.

The company’s shares began trading its initial public offering, 71,500,000 shares of Class A common stock, at $13 on the New York Stock Exchange today under the symbol “ESRT.” Read More

Lease Beat

Law Firm Expands at W&H Properties’ 1350 Broadway

1350-exterior

Tarter Krinsky & Drogin LLP has signed an expansion at W&H Properties1350 Broadway, the landlord announced last week. The law firm, which moved to the building in 2007, increased its presence by 35 percent and will now occupy a total of 37,609 square feet across three floors.

“Tarter Krinsky & Drogin has been a tenant at 1350 Broadway during a period in which we have transformed the property in a $53-million, top-to-bottom upgrade program,” said Anthony Malkin, president of Malkin Holdings, which oversees the W&H portfolio, in a prepared statement. “This expansion demonstrates that we’ve delivered on our promises and ensured the highest levels of tenant satisfaction.” Read More

Lease Beat

Allianz Real Estate of America Relocating to One Grand Central Place

1GCP-exterior

The U.S. Real Estate arm of German insurance company Allianz is relocating to One Grand Central Place from 1114 Avenue of the Americas after signing a 10-year lease for over 7,000 square feet on the 37th floor of the W&H Properties building. Asking rents were $59 per square foot.

“We chose the location based on the competitive rent, the build out that the landlord is undertaking, the excellent light and views and the proximity to Grand Central,” Greg Taubin, executive managing director at Studley, who represented the tenant, told The Commercial Observer.

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Postings

Power 100 Heat Map

CO POSTINGS 4-30

From a Taconic Investment Partners project in Hunts Point to the World Trade Center site in Lower Manhattan, power in New York real estate circles has increasingly expanded from the comfortable confines of Midtown Manhattan to the fringes of all five boroughs. While large developments such as the Related Company’s Hudson Yards often dominate the conversation, Brooklyn, Queens and even the Bronx continue to grow in stature.

Long Island City is fast becoming a focal point for the real estate industry as Rockrose and other residential developers tap into the growing Queens neighborhood. In the Bronx, Taconic Investment Partners, formerly the owners of 111 Eighth Avenue, is in the process of a significant capital improvement plan at the BankNote Building on Lafayette Avenue in Hunt’s Point.

Below, a sampling of where power thrives in New York City in 2013. Read More

Controversies

No Decision Reached on Legality of Empire State Building IPO Buyout

New York State Supreme Court, Manhattan

The Malkins’ quest to launch a $1 billion IPO that would include the Empire State Building continued today at the New York State Supreme Court in Manhattan but concluded without a decision.

The plaintiffs in Meyers v. Empire State Realty Trust Inc. are asking Supreme Court Justice O. Peter Sherwood to block a plan by Peter and Anthony Malkin to buy them out for $100 a share if they do not vote in favor of the proposed IPO.

As of April 3, the Malkins had received 94 percent of the total votes needed to proceed with the IPO, but Justice Sherwood has said that he will throw those votes out if he rules that the buyout is illegal. Read More