CHAPPAQUA, NY-The $59-million sale/partial leaseback of the 114-acre corporate headquarters campus of the Reader’s Digest Association, Inc. closed last week. Officials with the storied publishing house received $49 million at closing from the buyer, a joint venture of South Norwalk, CT-based Summit Development LLC and Greenfield Partners LLC.

Reader’s Digest will receive an additional $10 million from the buyer two years from now. Officials with Reader’s Digest also note that it signed a 20-year renewable lease for a portion of the property. Although no firm figure on the size of the lease were released, Reader’s Digest will likely lease back a little less than one-third of the corporate headquarters building. The company will be looking to “restack” the portions of the building it intends to continue to use as its corporate headquarters in the next 12 months. The building, which totals approximately 700,000 sf, was built in 1939 with additions constructed in the 1940s, 50s and 60s, company officials say.

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 represented Reader’s Digest.

Reader’s Digest had 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, down from the 1,800 workers 10 years ago. Reader’s Digest expects that the sale/leaseback deal will reduce its costs by $10 million per year.

Felix Charney, principal of Summit Development, said when the sale/partial leaseback deal was announced a month ago, that while no firm development plans have been formulated, “number one on its list” will be the development of some sort of age-restricted housing on the property. The housing could be new construction as well as conversion of some of the existing office space. Thompson says the Summit/Greenfield partnership will look to begin discussions with the community and local government officials in early 2005.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.