Mort Zuckerman announced that his publishing empire will be relocating to lower Manhattan.
U.S. News & World Report Media Group, owner of the Daily News and publisher of the synonymously named weekly magazine, will move from its current headquarters at the West Side office building 450 West 33rd Street to Four New York Plaza, where it has signed a 100,000 square foot lease for two office floors in the base of the building.
Real Estate Weekly first reported the deal on its website in May when it was still in negotiations.
“We’re very much looking forward to the relocation of the New York Daily News and the U.S. News & World Report Media Group to 4 New York Plaza,” Zuckerman said in a statement. “These are first-rate accommodations in the heart of the city’s financial district with superb amenities. This location will provide our employees with a modern new home.”
Harbor Group International, LLC, acquired Four New York Plaza, a roughly 1.1, 22-story, office building at the corner of Water and Broad Street, late last year for around $110 million, or about $110 per square foot. The property was not only one of the lowest priced skyscrapers to trade hands during the downturn in the real estate market, it also appeared to come with little risk for Harbor. The bank JP Morgan Chase, which owned the tower, agreed to remain in the building as an anchor tenant occupying about 75 percent of its space.
Real estate experts said that the deal’s attractive economics offered Harbor the chance to market Four New York Plaza’s remaining vacancy at aggressive rates that would attract tenants even during the leasing slowdown. Bargain rents were what the Daily News was looking for
Zuckerman made himself into a billionaire as a real estate investor, founding the real estate investment trust Boston Properties, which is one of the city’s largest commercial landlords and owner of a collection of trophy midtown skyscrapers. Sources said that the Daily News or U.S. News & World Report was in the market for more affordably priced space than the high end assets in his company’s portfolio.
Harbor was represented in the deal by CB Richard Ellis executives Howard Fiddle and Brad Gerla, who are both leading brokers in lower Manhattan. Cushman & Wakefield executives John Cefaly and Michael Burgio handled the deal for the tenant.