Columbia Property Trust Inc. is buying the office space at the Manhattan building that once housed the New York Times from affiliates of Blackstone Group LP for $516 million.
The deal will be funded by a $300 million six-month bridge loan and short-term borrowings, Columbia said in a statement. The purchase is expected to close within 30 days, the Atlanta-based company said.
Blackstone bought the office portion of the 16-story building at 229 W. 43rd St. in 2011 for $160 million. It invested $105 million in renovations aimed at luring Internet and communications companies to the property, which was the headquarters of the New York Times from 1913 to 2007. Yahoo! Inc. leased four floors in 2013.
“Acquiring this iconic property, with such strong tenancy and below-market rents, at attractive pricing compared with other New York transactions enables us to increase exposure in what will be our second-largest market,” Nelson Mills, president and chief executive officer of Columbia Property Trust, said in the statement.