Empire State Building gets ‘left-field’ $2 billion offer to sell

Storm clouds pass over the top of the Empire State Building in New York, June 13, 2013. Credit: REUTERS/Lucas Jackson
Storm clouds pass over the top of the Empire State Building in New York last weekend. Credit: Reuters

A New York City real estate company offered to buy the Empire State Building for $2 billion, a written offer showed, significantly below the skyscraper’s appraisal price and about three weeks after investors in the iconic building approved a plan to take the tower public in a real-estate investment trust.

On Tuesday, Cammeby’s International Group, a privately held company headed by real-estate mogul Rubin Schron, offered to buy the property for cash from the Malkin family, which controls the Empire State Building, and allow the current investors to remain stakeholders if they chose. Schron was not available for comment late Tuesday.

The Malkin family’s law firm has received the offer but a representative had no comment when contacted by Reuters. Both the Malkins and the Helmsely Trust, which majority-owns a sublease, would have to approve the proposed deal. It also would have to be endorsed by the other investors.

The offer, described as “out of left field” by the Wall Street Journal, was set in motion by attorney Steven Meister, who represents a group of investors who are not in favor of the Malkins’ plan to roll up the Empire State Building and more than 17 other properties into a real estate investment trust called Empire State Realty Trust Inc., which would become publicly traded.

Meister’s son Jason Meister, a vice president with real estate brokerage Avison Young, brokered the deal. The offer was made public by Meister’s firm, Meister, Seelig & Fein LLC.

An appraisal conducted last summer valued the 102-story building at $2.33 billion, after debt, while the REIT, which will also have other properties, is estimated to be valued at about $4.15 billion, after debt, according a filing with the U.S. Securities and Exchange Commission.

The offer is contingent on buying both the building and the operating lease, according to the bid. The offer is valid for 60 days and has a closing period of 90 days.


Metro announces Earth Day New York partnership for…

Metro is pleased to announce we are once again the media partner of Earth Day New York for 2014.


Putin fields question from NSA fugitive Edward Snowden

Edward Snowden, the fugitive former U.S. spy agency contractor who leaked details of intelligence eavesdropping, asked Russian President Vladimir Putin a question on Thursday during…


Cops release sketch of Madison Avenue jewelry robbery…

Authorities continue to look for a man suspected in a $54,000 jewelry heist at a Madison Avenue store from from last week.


Rapper affiliate of Wu-Tang Clan 'cuts off own…

Rapper Andre Johnson, who has performed with New York outfit the Wu-Tang Clan, is in a critical condition after reportedly cutting off his own penis…


Way to go, guys: 'Game of Thrones' broke…

Proving that not everyone has parents who subscribe to HBO and are generous with their HBO Go logins, the latest episode of "Game of Thrones"…


Shane West talks WGN America's 'Salem'

The actor on history lessons, a new network and showing his butt.


Review: 'Fading Gigolo' finds few jokes in women…

John Turturro writes, directs and stars in "Fading Gigolo," in which he plays a prostitute whose pimp is Woody Allen. And there's still very few jokes.


Interview: 'Fading Gigolo' director John Turturro talks about…

John Turturro discusses his new film "Fading Gigolo," how to get Woody Allen to wear more than khakis and the far-off "Barton Fink" sequel.


Rangers' speed versus Flyers' size makes interesting playoff…

Among the myriad aspects that will make this Metropolitan Division semifinal series fascinating will be the battle between the Rangers' speed and the Flyers' size,…


Fantasy basketball: Finding next year's NBA studs

Before we put the 2013-14 fantasy basketball season to bed, it’s worth thinking about next year’s breakouts while they’re fresh in our mind.


Nets-Raptors first round NBA playoffs schedule, TV, times

The Nets tanked their way to the No. 6 seed over the course of the final few games of the season.


Knicks wrap up season with win over Raptors

The Knicks wrapped up their season as it began — undermanned — but that still didn’t deter them from ending it the right way.


Why is dance cardio taking off in NYC?

Instructors at some of the city's hottest classes explain why.


Earth Day travel in the Florida Keys

See why this eco-friendly destination deserves your attention.


Sorry, Facebook — FarmVille goes mobile with 'Country…

Zynga has released a version of the hit "FarmVille" tailored for smartphones and tablets in the hope of reaping a bumper crop of players.


Star-studded summer camps

Give your child the star treatment this summer with a celebrity-endorsed camp.