American Strategic Investment Co. has agreed to a term sheet to sell its 9 Times Square Midtown Manhattan property for $63.5 million. It is expected that the closing of the transaction will occur within 120 days of the execution of a definitive purchase and sale agreement between the parties.
The company previously announced that it had secured an amendment of the loan on 9 Times Square, which extended the maturity date of the loan to October 2024, with the option of an additional extension of the loan to year-end 2024 subject to certain conditions, to facilitate the proposed sale of the property.
The company expects the sale to generate $13.5 million in net proceeds at closing, according to CEO Michael Anderson, “which we intend to use to pursue the expanded asset acquisition and diversification strategy into higher yielding assets that was announced last year. Additionally, if completed, we expect that this strategic disposition will strengthen our balance sheet.”
There is no assurance that the company will enter into a definitive agreement for the sale on the terms in the term sheet or at all, the company says.