NYT sells headquarters for $225M

Guess this is a week for bad news for newspapers; today Time released a list of ten newpapaers that will fold before the end of 2009. Yesterday we found out that less than two years after opening, Renzo Piano-designed headquarter the New York Times needed to sell it to raise cash. The $225 million sale will not result in a move, as the company also signed a 15-year lease on 21 floors in the 52-story structure. Rent for the 750,000 square feet of space is $24 million for the first year. It will escalate each year from there, with a buyback option in the 10th year. The Times basically sold their 58% of the building, to developer Forest City Ratner the rest. This is only a drop in the bucket as several hundred million in debt is coming due over the next two years. The next on the block could be the Boston Globe which is losing a million dollars a week according to Time. They might package The Boston Globe, a Cable sports network in Boston, NESN and the cherry of the deal an 18% share of the Boston Red Sox., to stay alive.

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