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Green Empire State Building for Sale

Green Empire State Building for Sale

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U.S. Green Technology | Where Main Street Meets Green Street

The Empire State Building, the same one King Kong originally climbed in 1933, is the exact same one that is now up for grabs, literally (if you have a King Kong-sized purchase amount). And this large building also just became the tallest building in the United States to obtain LEED (Leadership in Energy and Environmental Design) Gold certification for being environmentally improved. Talk about a big 2012 for this property giant.

You could say the newly greened Empire State Building essentially is for sale. Empire State Realty Trust Inc., which owns what used to be the tallest edifice in the world, has filed to sell $1 billion worth of its Class A shares to investors. The 1931 Empire State Building also has improved its worth among environmental enthusiasts, as $550 million was allotted for this establishment a couple of years ago to enable it to meet today’s green standards. Renovations will continue to be made to the property through 2013 using an investment of $175 million to $215 million.

The recent Empire State Building ecological upgrade included putting double hung operable windows in place of the establishment’s old windows as well as installing an energy efficient heating and cooling system in the building. These moves should result in almost a 40 percent dip in the facility’s energy use, leading to more than $4 million in savings. In addition, the Empire State Building bathrooms now feature low-flow fixtures, new paints are low-VOC (volatile organic compounds), cleaning supplies are green and office recycling programs are in place there.

Empire State Building IPO Filing is Major

Many people have owned the Empire State Building over the decades, and the latest legal battle involving this Manhattan building actually involved real estate heiress Leona Helmsley, the Malkin family and even business magnate Donald Trump.

The Malkin family finally assumed control of the Empire State Building just two years ago after first purchasing it a decade ago. The plan for Malkin Holdings now is to file to become a real estate investment trust that is publicly traded, and the trust should appear as “ESB” on the New York Stock Exchange. A real estate investment trust, or REIT, experiences the advantage of steering clear of having to cough up corporate income taxes as long as it disperses a minimum of 90 percent of its taxable income to shareholders.

Class B shares will be valued at 50 votes each, while class A shares that are sold to the public will be equal to one vote each. The IPO will be underwritten by Goldman Sachs and Bank of America Merrill Lynch, and the money gained from the move will cover debt and payments to current stakeholders.

So, when exactly will these plans go into effect? Probably in three months.

The real estate investment trust actually has five major tenants, including Citigroup, Thomson Reuters of Reuters News, cosmetic company Elizabeth Arden Inc., Odyssey America Reinsurance and Legg Mason, an asset manager.

By YaShekia King

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2 comments

  1. A billion dollars for the Empire State building? That sure is a lot of green for a green building. And to thinkthey thought King Kong was crazy for climbing it. Next thing you know they’ll be selling shares in the Brooklyn Bridge!

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