So, You Want to Own the Empire State Building?

You may soon be able to purchase a piece of the Empire State Building!  The Malkin family of New York, which currently controls the 102-story building, has filed papers with the Securities and Exchange Commission that could lead to the landmark skyscraper being included in a newly formed real estate investment trust, or REIT.  Although the nation’s office market has been in the general doldrums, it appears that the world-famous building is outperforming comparable properties, pulling in a net annual income of $63 million.

Built in the midst of the Great Depression by a group of investors led by tycoon John Raskob, the Empire State Building sat empty for years after it was completed.  Gradually, the building filled up with tenants drawn by the cache of the famous building.  More recently, the 1,454 foot high building has been owned by the Prudential Insurance Co, controlled by the late Leona Helmsley and coveted by Donald Trump.  Beloved by “King Kong” fans, the building has recently undergone a $550 million renovation, and was appraised last summer for $1.65 billion.  The owners want to use the famous building as the centerpiece of their new REIT, and documents will likely be filed within the next three months.

 

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