Columbia Property Trust to Expand Presence in Manhattan with Acquisition of Historic New York Times Building for $516 Million

Columbia Property Trust, Inc. announced it has signed a definitive agreement to acquire the commercial condominium unit in the historic New York Times Building, a 16-story, 481,110-square-foot Class-A office building located at 229 West 43rd Street in the Times Square submarket of Manhattan, from affiliates of Blackstone Real Estate Partners VI L.P. for $516 million. The acquisition is expected to close within 30 days subject to customary closing conditions.

The acquisition is expected 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 (as of June 30, 2015, adjusted for recent dispositions). Currently 98% leased, the commercial unit of 229 West 43rd Street is expected to have first-year in-place net operating income (NOI) of approximately $22.3 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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