NEW YORK CITY-The tower famous for the New Year’s Eve ball drop has been recapitalized for $112.8 million, according to the New York Post. Atlanta-based Jamestown Properties has taken title at One Times Square, buying out an equity stake from Sherwood Equities, Sherwood's CEO and principal owner Jeffrey Katz confirms GlobeSt.com.
Under the deal, Jamestown remains the majority stakeholder in the property, while Sherwood will continue managing the building and maintaining the tower’s signage.
“The price was very full and the structure of the new entity wasn’t the same as the structure as the old entity, which I had entered into,” Katz says, noting that it was an “excellent time” to sell.
“Our equity position was only passive anyway,” he says. “They [Jamestown] always had a controlling interest. It was really just a financial decision.”
The tower is part of Jamestown's Premier Property Fund, a perpetual-life, commingled core-plus fund that the company formed in December 2011. Other properties in the pool include the 1.2-million-square-foot Chelsea Market and Pacific Place in San Francisco. In total, the three assets required approximately $900 million of equity, with the bulk of the money coming from pension funds in the United States, Australia and Europe and $60 million invested from Jamestown senior management.
One Times Square consists of 100,000 square feet of office and retail space, and long-term leases to advertisers such as Toshiba, News America, Anheuser-Busch Corp., TDK, HBO and Dow Jones.
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