(NY) Times Co. Is in Talks to Sell Part of Building (Dinosaur Media DeathWatch™)

The New York Times ^ | January 22, 2009 | Terry Pristin

[abb]

The New York Times Company is in advanced negotiations to sell a substantial portion of its 52-story headquarters building on Eighth Avenue in Midtown Manhattan to W. P. Carey & Company, an investment and management firm that specializes in so-called sale-leaseback transactions, the newspaper company confirmed on Thursday.

Under the deal, the Times Company would sell the 19 floors it currently uses in the building but not the 6 floors it leases to other tenants. The Times Company would continue to occupy and manage its floors and would have the right to buy back the space at a predetermined price when a 10-year lease expires. Designed by the architect Renzo Piano, the building stretches from 40th to 41st Street. It was completed in 2007.

A spokeswoman for the Times Company, Catherine J. Mathis, declined to say how much W. P. Carey would pay for the space, what it would cost to repurchase it or what the rent would be. The Times Company previously said that it was pursuing a sale-leaseback arrangement for up to $225 million and would use the proceeds to repay some of the company’s long-term debt.

“Because we are in continuing discussions, we cannot comment on the status of the sale-leaseback,” Ms. Mathis said Thursday. Guy B. Lawrence, a spokesman for W. P. Carey, declined comment on the discussions.

The Times Company owns 58 percent of the 1.5-million-square-foot tower. The developer Forest City Ratner owns the rest of the building. Forest City’s portion will not be included in the sale.

In a sale-leaseback transaction, the seller maintains control over its space and the responsibility for paying taxes, maintenance and utility costs. W. P. Carey’s investors would be guaranteed a specific return for the life of the lease.

snip

[Thombo2]

I don’t want to sound as though i’m gloating,but at this rate “Pinch” will be flat broke in no time.Maybe Slim will retain him as a janitor?sarc

[jimfree]

Buy back option? Sounds like they are pawning the building. The effective interest rate must be enormous.

[Condor51]

*** The numbers don’t add up 19 and 6 are 25, 58% of 52 is close to 30, so that makes 55 stories.***

Well no offense, actually they do. Per the article the '58%' number is the square feet of the building the NYT owns (LxW) . Has nothing to do with volume (LxWxH). And FWIW ...

• In commercial buildings the ground floor is 'usually' two stories high - though it still counts as 'One'.
• The same for 'Mechanical Room Floors' (HVAC, Plumbing, Electrical and other 'stuff') . Those are also two stories high, though counted as 'One'.
• In this building there's 'prolly' Three like this; One in basement/sub-basement, one about 1/2 way up and another at the 'Top' floor. (not seeing the plans this sis an educated guess based on 39 years experience.
• And any floor where the NYT has its Presses/Printing Equip, are also prolly two stories high, again counted as 'One'.

  Another quirk in Hi-Rise Buildings (Commercial and Residential) -- many *don't have* a 13th Floor. The 14th Floor is really the 13th but the superstitious sheeple don't have a clue.

  All of this explains why one 52 Story Building is not the same hight as another 52 Story building. And Commercial Buildings of 'x' stories are also always taller than residential buildings of the same 'x' floors. (Commercial are approx 12+ feet 'slab to slab' -- Residential, 10+ feet 'slab to slab'.)

Anyway the 58% is correct, its based on square feet. The 'usable' (rentable) floor space in a building.

[RayChuang88]

I think if Slim can get effective control of the New York Times, he WILL replace "Pinch" Sulzberger with a new Editor-in-Chief modelled after Abraham "A.M." Rosenthal, the last really good Editor-in-Chief the Times ever had. Just doing that will restore a lot of prestige (and circulation!) in the newspaper--especially doing away with the blatant bias of the general news coverage!

[PLMerite]

“Memphis TV Station Uses Archives As Online Resource”

Interesting. I think it’d be nice to be able to access old news videos online. It’d be easier to hold their feet to the fire that way.

I’d also like to find a higher-quality version of the “exploding whale” story.

[abb]

Trouble already?

http://www.marketwatch.com/news/story/Does-Obama-think-ABCs-Jake/story.aspx?guid={E32609D9-A019-4FC1-B6C3-E8D78A738ED1}
ABC’s Tapper: ‘I try to avoid any pack mentality’
Commentary: The media try not to fall under the spell of Obamamania

http://www.politico.com/news/stories/0109/17833.html
Media frustration spills into briefing

http://www.google.com/hostednews/ap/article/ALeqM5jWIMzv3PZ_PQvXPxAqOU90VeOdjQD95SKJDG0
News access issues concern those covering Obama

[Norman Conquest]

No presses in the building. They moved the printing operations out to Carlstadt NJ (and later multiple remote sites) around a decade ago to escape impossible traffic in Midtown, onerous union rules, city wage taxes and the pressroom noise and smell intruding upon the newsroom tranquility.

All the layouts are now beamed by satellite to the platemaking equipment at the press sites.

The newsroom doesn’t see a printed paper until an hour after the presses roll and the delivery trucks come IN through the Lincoln Tunnel.

[abb]

http://www.tulsaworld.com/news/article.aspx?subjectid=11&articleid=20090123_11_A1_Olhmwa589022
Tulsa World, Oklahoman to share content

[Brad from Tennessee]

AUTOCANNIBALISM

NOUN: autocannibalism

1. The act of eating oneself.

Note: Usually only happens in states of extreme duress.

[abb]

http://www.broadcastingcable.com/article/162581-NBC_Universal_Q4_Profits_Off_6_.php
NBC Universal Q4 Profits Off 6%

http://www.broadcastingcable.com/article/162590-CBS_Testing_Katie_Couric_In_Primetime.php
CBS Testing Katie Couric In Primetime

[abb]

http://www.portfolio.com/views/blogs/mixed-media/2009/01/22/msnbcs-newest-host-bill-maher-could-happen
MSNBC’s Newest Host: Bill Maher? Could Happen

http://www.smh.com.au/news/technology/biztech/battle-to-outgun-wikipedia-and-google/2009/01/22/1232471469973.html
Watch out Wikipedia, here comes Britannica 2.0

[GOPJ]

Thanks for the ping.

[GOPJ]

It’s like yard selling the family silverware - in the short run hard choices can be put off...

[Milhous]

What the he!! is this all about?

http://www.nytimes.com/2009/01/23/arts/television/23cour.html?ref=todayspaper CBS Puts Its Prime Time in the Service of Couric

Grasping at straws.

In finding new ways to draw attention to her, CBS is trying to capitalize on the attention she has drawn away from her newscast — most notably the millions of people who turned to YouTube to watch clips of her interviews with Sarah Palin last fall.

CBS reimagineering that Palin's popularity magically belongs to Katie.

[razorback-bert]

You won’t let anyone make fun of the NYT.

I knew the were using square feet on the 58%, but my math looks more like the NYT’s math

[ken5050]

Good morning....

Re the NY TImes, what is NOt being discussed is that, after this, the Times has NOTHING, NADA, ZILCH, ZIP left to sell or hock..These two deals, the sale/leasback of the building, and the loan from Slim....well..that's it...there is nowhere else left to turn for $$$

Also, the fact that they took these two courses of action, as opposed to selling the Globe,to raise funds IMHO, is because there was effectively NO buyer for the Globe, IOW, it means that the Globe is worthless..

[abb]

http://www.niemanlab.org/
Buy a newspaper or save a newspaper: Your choice.

http://savethemedia.com/
How journalists can use MySpace

[abb]

Also, the fact that they took these two courses of action, as opposed to selling the Globe,to raise funds IMHO, is because there was effectively NO buyer for the Globe, IOW, it means that the Globe is worthless..

Spot on.

[abb]

http://www.newspaperdeathwatch.com/
TGIF - 1/23/09

[okie01]

IOW, it means that the Globe is worthless..

Would anybody be surprised if the Times attempted to sell the Globe to its employees for $1.00 -- just to get out from under?

Even at that, it would be a bad deal...for the employees.