Empire State Building receives second bid
June 28, 2013 - New York
The Malkins, the New York family that controls the Empire State Building and is spearheading a plan to sell it as part of a public offering, said it is reviewing two separate offers to buy the Empire State Building.
In a securities filing on Wednesday, the Malkins disclosed that they had received two unsolicited bids for the skyscraper, one for $2 billion and one for $2.1 billion. The building has been appraised at $2.5 billion, according to a previous securities filing.
"We are reviewing the offers and their terms. We consider all matters, including unsolicited offers, consistent with our fiduciary duties, to form a judgment on what action is appropriate," the Malkins said in the filing. A spokeswoman said they had no additional comment.
The family is strongly supporting the plan to sell the skyscraper and 18 other properties as a real estate investment trust. The Malkins recently received approval from the stakeholders in the famous building to go ahead with that process.
The $2 billion offer was sent in a letter last week by attorney Stephen Meister, who has been representing stakeholders in the Empire State Building opposed to the IPO plan. He said the bid was from a company run by Rubin Schron, a New York City real estate investor who owns part of downtown Manhattan's Woolworth building.
The Malkins filing did not disclose the identity of the group or person who made the $2.1 billion offer.
Reached by phone on Wednesday, Mr. Schron declined to say whether he would increase his bid in light of the higher offer. "I don't want to discuss my plans," he said. "I don't want to get involved in the newspapers."
Mr. Meister has been fighting the Malkins in New York court, arguing that a buyout provision in the IPO plan is illegal.
The court ruled against him in May, but Meister is appealing that decision and is hoping if he prevails on appeal he can force a new vote and give stakeholders the opportunity to consider the unsolicited offer.
blog, Manhattan, building, Office buildings