(Seattle) Times sells building to California real-estate investors (Dinosaur Media DeathWatch™)

Seattle Times ^ | January 28, 2011 | Eric Pryne

[abb]

The Seattle Times Co. has sold an eight-story South Lake Union office building to California real-estate investors and will become the building's prime tenant, vacating the nearby building that has been its headquarters for 81 years.

The 1000 Denny Building was purchased this week for $36 million by an affiliate of Simms Commercial Development of Beverly Hills, public records indicate. It was one of two properties The Times put up for sale in 2008, saying it needed cash to pay down debt and subsidize its flagship newspaper, which, like most dailies, is struggling financially.

The sale "contributes to our financial stability," Times Publisher Frank Blethen said in a message to employees Thursday. The Times had been asking $44 million for the property in recent months, according to offering materials.

Blethen said his company, which already occupies part of the Denny Building, would move its newsroom, executive offices and other operations now housed at its headquarters at 1120 John St. to the building. The Times is hoping to complete the move by the end of the year, he said.

The newspaper will occupy about 55 percent of the Denny Building's 285,000 square feet. The lease is for 10 years, with options to extend, said Times spokeswoman Jill Mackie.

The remainder of the 82-year-old building, at Denny Way and Boren Avenue North, is leased to other tenants. The sale includes space occupied by the venerable 13 Coins restaurant.

While there are no immediate plans for the Times' full-block headquarters building, Mackie said the company hopes to one day redevelop the property, perhaps in a joint venture with a development firm.

The timing and type of development, office or residential, hinge on zoning and the market, she said.

snip

[abb]

Selling assets to keep the deadhead payroll afloat.

[abb]

ping

[Dem Guard]

"The lease is for 10 years"

That ought to be long enough to liquidate what's left.

[stubernx98]

They call on a regular basis asking for me to subscribe. I say, as soon as you gt rid of the lefty Jour o lists I might reconsider.

When they started lauding Obama in the Sports Section that was too much.

Got a friend who was night editor at the Oregonian, gave up his job, went back to school for a degree in Finance - saw wall writing

[abb]

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[ReverendJames]

"The sale includes space occupied by the venerable 13 Coins restaurant. "

The Thirteen Coins restaurant is actually located across the street from the main entrance to the Seattle Times building and not in the actual building itself.

[Zakeet]

Selling assets to keep the deadhead payroll afloat.

Actually, if I read this right, the Seattle Times is going to occupy about half the building for at least a decade while the new owners try to lease out the rest of the property.

If this is the case, the newsers are merely taking out a collateralized loan ... they are exchanging their ownership in the structure for a 10 year note.

In most circles, that type of arrangement, combined with a $8 million price haircut on the building's price, is regarded as a sign of financial distress.

[sionnsar]

Thanks to abb for the ping.

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