MTA to sell Midtown HQ Buildings

[The Davy Crockett]

The NY Times is reporting that the MTA "...which has consolidated departments and reduced its payroll under severe financial pressure, now plans to sell its headquarters and two adjoining buildings on Madison Avenue in a deal that it says could reap more than $150 million."

The full article is here: http://www.nytimes.com/2011/04/21/nyregion/mta-is-planning-to-sell-its-midtown-headquarters.html?ref=nyregion

 

[WhoozOn1st]

Fortunately it doesn't appear to be one of those sale/leaseback arrangements, which are invariably long-term bum deals for public entities.

 

[George Harris]

Fortunately it doesn't appear to be one of those sale/leaseback arrangements, which are invariably long-term bum deals for public entities.

That is what I was wondering about. It is the public entity version of doing a reverse mortgage on your house. Gives you some extra money for a while by cashing out your asset. The only difference a reverse mortgage is based on the concept that you will no longer be alive at the end of the payback period, and disinheriting your heirs is either not an issue or something you intend to do.

 

[Dutchrailnut]

any sale will need MTA to leaee office space at much higher prices.

and the sale even at over $100 million is a mere drop in the MTA bucket.

Currently for example MNCR is leasing office space in Graybar building while there is room in MNCR headquarters at 347 Madison ave.