The Real Deal recently asked Eric Zipkowitz, a Partner in Tarter Krinsky & Drogin’s Real Estate Practice, to comment on the plans of property owner Empire State Building Associates to fund building improvements through cash flow.
The company outlined its plans in documents filed with the U.S. Securities and Exchange Commission, noting that the building manager, Empire State Building Company, had been able to obtain only $71.5 million in financing for a $626 million rehabilitation of the building. Funding building improvements through cash flow means that annual payments to the owners of the 3,300 outstanding shares will be cut from more than $5,000 a year to slightly more than $1,000 a year.
Eric told The Real Deal that Empire State’s conservative approach makes sense in the current environment. “While the participants might not be happy about reduced cash flow on a short-term basis, my guess is that as the market continues to improve and stabilize, the current strategy should pay off for all when additional outside financing is eventually obtained,” he said. The magazine noted that Eric is not involved with the building or its finances.
Click here to read the entire article in The Real Deal.
|Zipkowitz, Eric Partner||Partner||212.216.8088|