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Blackstone Sells Midtown Commercial Condo

NEW YORK CITY—The asset is located in the former New York Times headquarters, an iconic Class A office tower that features 481,110 square feet of space.

By Rayna Katz | Updated on July 24, 2015

NEW YORK CITY—Columbia Property Trust has signed a definitive agreement to acquire the commercial condominium unit in the historic New York Times building, at 229 W. 43rd St., for $516 million. Blackstone Real Estate Partners VI is the seller of the 481,110-square-foot asset, which sits in a 16-story, Class-A office building in the Times Square submarket.

The acquisition is slated to be funded with a $300 million six-month bridge loan and short-term borrowings under Columbia’s $500 million unsecured credit facility, which is expected to increase the company’s leverage to approximately 39% of gross real estate assets. Currently 98% leased, the commercial unit of 229 West 43rd Street is expected to have first-year in-place net operating income of approximately $22 million. The acquisition will bring Columbia’s portfolio to approximately 69% CBD and 79% multi-tenant and its exposure to high-barrier markets to 52%, all based on annualized lease revenue.

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