Changing business situations can result in a company having major changes in its space needs. Such changing needs can sometimes lead to a company engaging in major real estate transactions. This can be seen in an over half a billion dollar commercial real estate deal that was recently reached in New York City.
The large bank, Bank of New York Mellon, has recently been working to scale back and consolidate its office presence in New York City. This led to the bank deciding to sell the lower Manhattan skyscraper that has served as its headquarters. The building has over a million square feet of space. The bank recently reached a deal to sell the building for $585 million. The buyer in the deal is a joint venture. The finalization of this deal is expected to occur in the third quarter of this year.
In light of the planned sale, the Bank of New York Mellon is now seeking to lease space, with the intent of putting its offices in such space once the sale of the skyscraper is completed. Specifically, the bank is planning to lease some 400,000 square feet of office space.
While the scale of the above-mentioned real estate sale is much larger than most real estate deals, the situation that brought it about is one that many businesses can relate to. When it comes to any commercial real estate transaction brought about by changing space needs, regardless of the size of the deal, ensuring that every part of the deal is done correctly is very important. Real estate law attorneys understand the various important issues that commercial real estate deals can give rise to and can help companies when it comes to addressing such issues.
Source: Businessweek, “BNY Mellon Reaches $585 Million Deal With Macklowe on NYC Tower,” David M. Levitt, May 22, 2014