NEW YORK CITY—Empire State Realty Trust has exercised its options to purchase the ground and operating leases at 112 W. 34th St., along with the ground lease at 1400 Broadway for approximately $734 million in cash, common stock and operating partnership units. Barring any hiccups, the acquisitions are expected to close within 90 days.
The company will acquire the leaseholds under the terms of the option agreements, which set the consideration to be paid to participants in cash, stock and units. 112 W. 34th Street's leaseholds and fee title to a small contiguous property will be acquired for approximately $423.6 million, or about $570 per square foot; 1400 Broadway's leasehold will be acquired for around $310 million, or approximately $346 per square foot.
Pursuant to the option agreements, both Anthony Malkin, the company's chairman and CEO, and Peter Malkin, the company's chairman emeritus, recused themselves from acting on behalf of the company in the appraisal process. Given their interests in the option properties, the Malkins additionally recused themselves from any management recommendation and Board vote on the transactions.
Calls by GlobeSt.com to Empire State Realty Trust seeking comment were not returned.
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