Jones Lang LaSalle
MORT BUYS OUT CITI CENTER PARTNER
By LOIS WEISS
May 11, 2006 -- Boston Properties, the real estate investment trust controlled by Daily News Publisher Mort Zuckerman, has agreed to buy out its partners in Citigroup Center in a deal that values the tower at $1.115 billion, The Post has learned.
Zuckerman's REIT will shell out about $700 a square foot, or nearly $400 million, for the 35 percent share of the 1.65 million square foot signature trophy from Allied Partners - a move that could pave the way for Boston Properties to sell the entire tower.
The Post has also learned the REIT recently paid Citigroup about $1.5 million to obtain the valuable naming rights to the slant-topped skyline landmark at 153 E. 53rd St. That means a future tenant or purchaser could rebrand the iconic tower.
The building is close to 100 percent occupied and Citigroup's lease for the bottom 23 floors has a decade left to run.
"To be the sole decision maker of an asset of that stature has a value in and of itself," said Studley investment broker Woody Heller, who sold Allied and Boston Properties the 59-story skyscraper in 2001 for $725 million.
Allied Partners, a private real estate firm headed by Chairman Richard Hadar and CEO son Eric Hadar, agreed to sell its interest to Zuckerman's REIT after negotiations that began last fall, sources said.
The Hadars made the original deal for the Citigroup Center and brought in Boston Properties as their partner.
Because of security issues, the Hadars have long sought to physically separate the shopping atrium from the offices. After 9/11, the cantilevered tower's leg was also reinforced against possible truck bombs.
Boston Properties recently agreed to sell 280 Park Ave. to the Dubai-based Istithmar, which at the same time decided to back away from the purchase of the REIT's 5 Times Square, apparently because its auditors, Ernst & Young, are the major tenants.
Istithmar divisions have already purchased 230 Park Ave. along with the Essex House Hotel, and is in contract to buy 6 Times Square, and it would not be a stretch to say they may be interested in a tower like the Citigroup Center.
MORT BUYS OUT CITI CENTER PARTNER
By LOIS WEISS
May 11, 2006 -- Boston Properties, the real estate investment trust controlled by Daily News Publisher Mort Zuckerman, has agreed to buy out its partners in Citigroup Center in a deal that values the tower at $1.115 billion, The Post has learned.
Zuckerman's REIT will shell out about $700 a square foot, or nearly $400 million, for the 35 percent share of the 1.65 million square foot signature trophy from Allied Partners - a move that could pave the way for Boston Properties to sell the entire tower.
The Post has also learned the REIT recently paid Citigroup about $1.5 million to obtain the valuable naming rights to the slant-topped skyline landmark at 153 E. 53rd St. That means a future tenant or purchaser could rebrand the iconic tower.
The building is close to 100 percent occupied and Citigroup's lease for the bottom 23 floors has a decade left to run.
"To be the sole decision maker of an asset of that stature has a value in and of itself," said Studley investment broker Woody Heller, who sold Allied and Boston Properties the 59-story skyscraper in 2001 for $725 million.
Allied Partners, a private real estate firm headed by Chairman Richard Hadar and CEO son Eric Hadar, agreed to sell its interest to Zuckerman's REIT after negotiations that began last fall, sources said.
The Hadars made the original deal for the Citigroup Center and brought in Boston Properties as their partner.
Because of security issues, the Hadars have long sought to physically separate the shopping atrium from the offices. After 9/11, the cantilevered tower's leg was also reinforced against possible truck bombs.
Boston Properties recently agreed to sell 280 Park Ave. to the Dubai-based Istithmar, which at the same time decided to back away from the purchase of the REIT's 5 Times Square, apparently because its auditors, Ernst & Young, are the major tenants.
Istithmar divisions have already purchased 230 Park Ave. along with the Essex House Hotel, and is in contract to buy 6 Times Square, and it would not be a stretch to say they may be interested in a tower like the Citigroup Center.
posted by Jones Lang LaSalle NJ News Blog at 2:29 PM
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