The New York Times Sells Its HQ, Starts Paying $2 Million a Month in Rent
More cash to shore up the New York Times Company (NYT): As the Times itself previously predicted, the company has sold off (most of) its portion of its Manhattan headquarters for $225 million.
The deal is a sale-leaseback, which means the Times is staying put, and will pay rent to new owner W.P. Carey & Co. Bill for the first year: $24 million. It’s a 15-year lease, and in year 10, the company can buy back its office space for $250 million.
More details here, but the take-away is that the newspaper gets more breathing room since the money will go to pay down long-term debt — specifically, $250 million in bonds that were due next year. Meanwhile, if you want to see what the market thinks of the deal the Times got, check the stock price of Forest City Ratner (FCE-A), the real estate developer that owns the rest of the building the Times is selling.