IPO: Empire State Bldg for sale at 17X its 2000 price

Owners of New York's highest remaining office tower, the 102-story Empire State Building, will try to raise $1 billion through an initial public stock offering (IPO), Bloomberg says here.

That's more than 17 times the $57.5 million investors led by Peter Malkin paid Donald Trump and Japanese investors when the Empire State changed hands in 2000.

Sounds like a fat premium. But back in 2000 the Empire State was hobbled by a master leasing agreement that locked in pre-inflationary rents. Since investor Malkin's group controlled that lease, since taking title it's been able to restructure rents to great advantage in New York's office real estate market, which has recovered farther from the mid-2000s slump than Philadelphia or other cities.

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