An IPO for the Empire State Building?

The family that controls the iconic property has filed tentative plans for a publicly traded company.

By Kim Peterson Nov 29, 2011 5:29PM
How'd you like to own a piece of the Empire State Building? The 102-story skyscraper may be open to investors if one family gets its way.

The Malkin family, which controls the property, has filed plans with regulators for a publicly traded company that includes the building, The New York Times reports.

The filing (which you can see here) doesn't say a whole lot. It refers to a company called Empire State Building Associates, and says that the Malkin family is working to include the company in a new real estate investment trust, or REIT.

The REIT would be a public company, which means we'll eventually see some registration papers with more financial details. The filing says the company will provide more documents in about three months.

The REIT would include two other buildings controlled by Anthony Malkin and his father, Peter Malkin, the Times reports. Those would be a 55-story tower across the street from Grand Central Terminal and a 26-story building at 250 West 57th Street in New York. Goldman Sachs (GS) is expected to underwrite the deal, the Times adds.

It's a good time for a REIT to go public. Investors searching for decent returns have shoveled some $6 billion into publicly traded REITs this year, Smart Money reports, up 18% from 2010 and 400% from 2009.

Unlike the tumultuous residential sector, commercial real estate values have been relatively stable with yields investors can appreciate. The Glimcher Realty Trust (GRT), for example, has a dividend yield of 5.1%. LTC Properties (LTC), a healthcare REIT, has a dividend yield of around 6.3%.

Tags: GSIPO
3Comments
Nov 29, 2011 10:37PM
avatar
Indeed you are right, JWS! Thanks for your sharp eyes.
Nov 29, 2011 10:29PM
avatar
"Investors searching for decent returns have shoveled some $6 million into publicly traded REITs this year"  Am I looking at this wrong? A whole $6 million.  Maybe billion, Mr. Powers.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

114
114 rated 1
278
278 rated 2
474
474 rated 3
641
641 rated 4
639
639 rated 5
663
663 rated 6
640
640 rated 7
499
499 rated 8
284
284 rated 9
122
122 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
COPCONOCOPHILLIPS9
TAT&T Inc9
VZVERIZON COMMUNICATIONS9
KOGKODIAK OIL & GAS Corp9
CVXCHEVRON CORPORATION8
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.