Empire State Realty Launches IPO

NEW YORK CITY-The long-awaited IPO for a new REIT to be backed by the Empire State Building and other office and retail properties supervised by Malkin Holdings is coming to pass. Empire State Realty Trust on Thursday afternoon said it had commenced an offering of 71.5 million shares that will be priced between $13 and $15 per common share, with underwriters having an option to buy up to 10.725 million additional shares, for a total of about $1.15 billion. The REIT will trade on the New York Stock Exchange under the symbol ESRT.

In its offering plan, which has not yet been declared effective by the SEC, ESRT says its main focus will be “to continue to own, manage and operate our current portfolio and to acquire and reposition office and retail properties in Manhattan and the greater New York metropolitan area.” Highlighted by the Empire State Building, that portfolio includes a dozen office buildings, seven of which are in Midtown, as well as six standalone retail properties, including four in Manhattan. Additionally, the REIT has entitled land at the Stamford Transportation Center in Stamford, CT, adjacent to one of its office properties, that will support the development of 380,000 square feet of office and garage space.