While no firm figure has been set, Reader's Digest will lease back a little less than one-third--approximately 230,000 sf--of the office space at the complex, according to a Reader's Digest spokesperson.

The combined transactions are valued at $59 million, with $49 million payable at the closing that is scheduled for late December. The remaining $10 million will be deferred until the second anniversary of the transactions, company officials add. The agreement also calls for a contingent $1-million payment and an option for the purchaser to acquire some residences adjacent to the Reader's Digest headquarters property for $3 million.

Cushman & Wakefield's Maureen O'Boyle, who works out of the brokerage firm's Stamford, CT offices, as well as Mitchell Konsker, Michael Rotchford and Margery Westcott of C&W's New York City offices are representing Reader's Digest in the transactions.

Reader's Digest has been reviewing options for its headquarters property, located in Chappaqua a hamlet of the Town of New Castle, for the past two years. The firm currently has 800 employees housed at the complex. Ten years ago, there were 1,800 employees working at the property. Reader's Digest expects that the deal will reduce its costs by $10 million per year.

The company intends to take about a year to "restack" the portions of the complex it intends to use and eventually move into the new space. The building was built in 1939 with additions constructed in the 1940s, 50s and 60s. The headquarters review process included contact with more than 400 companies and individuals interested in the property. In the end approximately 100 firms were in discussions at one time or another with the company about possibly acquiring the complex, Reader's Digest Adler says.

Felix Charney, principal of Summit Development, notes that the property also includes an as-of-right expansion of 180,000 sf of office space. While his firm plans to meet with local officials next year to devise a redevelopment plan for the property, the company intends to lease some of the space that Reader's Digest will be vacating. In addition, "number one on its list" would be the development of age-restricted senior housing on the property. The housing could be new construction as well as conversion of some of the existing office space.

As part of the deal, Reader's Digest retains the use of the Guest House, a 19th century home that is used by the company for guests and other dignitaries, the cafeteria and auditorium. The buyer has also agreed to retain a number of key amenities at the complex, company officials say.