New York Times Building Bought by Israeli Company

The New York Times Building, headquarters of the newspaper since 1913, was bought by Africa Israel Investments Ltd., an Israeli holding company, for $525 million.

Tishman Speyer Properties LP owns the 15-story building. The New York Times, the only tenant, is due to vacate the premises July 1, Africa Israel said yesterday in a statement. The newspaper publisher plans to move into a new 52-story office tower on Eighth Avenue.

New York office buildings are fetching record prices in a market buoyed by rising rents and falling vacancies. Office rents in Manhattan reached an all-time high in the first quarter as job growth pushed vacancies fell below 6% for the first time since 2001, real estate broker Cushman & Wakefield Inc. said this month.

"During the past two months, Africa Israel has carried out a number of business transactions in the U.S., at a value of over one billion dollars, which constitute a strong vote of confidence in the American market," Africa's chairman, diamond billionaire Lev Leviev, said in an e-mailed statement.

The New York Times Building, located one half-block west of Times Square at 229 W. 43rd St., will be rented as offices and retail outlets, Africa Israel said. The property has 775,000 square feet (72,000 square meters) of office space, according to the Yehud-based company.

Africa Israel plans to spend $170 million to renovate the property. In 2001, the building was designated as a historical and architectural landmark, according to Tishman Speyer's Web site. Tishman Speyer bought the property from the New York Times in 2004 for $175 million.

Israeli property companies have been buying real estate abroad, seeking new sources of revenue. Last month, Africa Israel said it became a 50% partner in the purchase of Manhattan's Apthorp Apartments, an early 20th century icon in the Upper West Side neighborhood.

Africa plans to add additional investors to the Times building transaction, and will negotiate with a foreign bank to finance the loan, the statement said. The acquisition will probably be completed in June, according to the company.