 Business Review
Day Case Study: The New York Times Company Mary Ann Tighe Chief Executive Officer New York Tri-State Region May 18, 2007 Exhibit 99.9 |
| Business Review
Day Case Study: The New York Times Company Mary Ann Tighe Chief Executive Officer New York Tri-State Region May 18, 2007 Exhibit 99.9 |
 CB Richard Ellis |
Page 2 CB Richard Ellis | Page 2 CB Richard Ellis | Page 2 Leveraging the CBRE Platform |
 CB Richard Ellis |
Page 3 CB Richard Ellis | Page 3 CB Richard Ellis | Page 3 The Challenge |
 CB Richard Ellis |
Page 4 CB Richard Ellis | Page 4 CB Richard Ellis | Page 4 The Challenge 229 West 43rd Street |
 CB Richard Ellis |
Page 5 CB Richard Ellis | Page 5 CB Richard Ellis | Page 5 The Challenge West 43rd Street |
 CB Richard Ellis |
Page 6 CB Richard Ellis | Page 6 CB Richard Ellis | Page 6 The Challenge 229 W 43 229 W 43 620 Eighth 620 Eighth |
 CB Richard Ellis |
Page 7 CB Richard Ellis | Page 7 CB Richard Ellis | Page 7 A Complex Matrix of Needs Landmarks • Designation Landmarks • Designation New York City • Real estate taxes • Economic development Developer Partner • Reasonable land price • Anchor tenant • Trophy property New York State • Land proceeds • 42 nd DP completion • Condemnation Funding • Architecture New York Times Co. • Ownership • Large floor plate • Times Square • Development expertise • Limit cost overrun risk • Limit speculative risk • Real estate tax risk • Limit 229 disposition risk |
 CB Richard Ellis |
Page 8 CB Richard Ellis | Page 8 CB Richard Ellis | Page 8 A Complex Matrix of Needs Consulting/ Office Leasing New York Times Co. • Ownership • Large floor plate • Times Square • Development expertise • Limit cost overrun risk • Limit speculative risk • Real estate tax risk • Limit 229 disposition risk |
 CB Richard Ellis |
Page 9 CB Richard Ellis | Page 9 CB Richard Ellis | Page 9 A Complex Matrix of Needs Consulting/ Office Leasing New York Times Co. • Ownership • Large floor plate • Times Square • Development expertise • Limit cost overrun risk • Limit speculative risk • Real estate tax risk • Limit 229 disposition risk • Condominium Structure • 80,000 sf base floors • Times Square • Forest City Ratner • 29-year PILOT • Friendly landmarking • Condominium Structure • 80,000 sf base floors • Times Square • Forest City Ratner • 29-year PILOT • Friendly landmarking |
 CB Richard Ellis |
Page 10 CB Richard Ellis | Page 10 CB Richard Ellis | Page 10 A Complex Matrix of Needs Consulting/ Office Leasing Developer Partner • Reasonable land price • Anchor tenant • Trophy property |
 CB Richard Ellis |
Page 11 CB Richard Ellis | Page 11 CB Richard Ellis | Page 11 A Complex Matrix of Needs Consulting/ Office Leasing Developer Partner • $85 mm shared • Tower funding mechanisms • 52-story Times Square office tower • Reasonable land price • Anchor tenant • Trophy property |
 CB Richard Ellis |
Page 12 CB Richard Ellis | Page 12 CB Richard Ellis | Page 12 A Complex Matrix of Needs New York City • Real estate taxes • Economic development New York State • Land proceeds • 42 nd DP completion • Condemnation Funding • Architecture Consulting/ Office Leasing |
 CB Richard Ellis |
Page 13 CB Richard Ellis | Page 13 CB Richard Ellis | Page 13 A Complex Matrix of Needs • $14.0 mm per year • “Multiplier Effect” New York City • Real estate taxes • Economic development New York State • Land proceeds • 42 nd DP completion • Condemnation Funding • Architecture • $85 mm • Commitment to build • 120% Letter of Credit • Renzo Piano Consulting/ Office Leasing |
 CB Richard Ellis |
Page 14 CB Richard Ellis | Page 14 CB Richard Ellis | Page 14 A Complex Matrix of Needs Landmarks • Designation • Designation Consulting/ Office Leasing |
 CB Richard Ellis |
Page 15 CB Richard Ellis | Page 15 CB Richard Ellis | Page 15 A Complex Matrix of Needs • Designation • Designation • Friendly landmarking Consulting/ Office Leasing Landmarks |
 CB Richard Ellis |
Page 16 CB Richard Ellis | Page 16 CB Richard Ellis | Page 16 Resolution • $14.0 mm per year • “Multiplier Effect” New York City • Real estate taxes • Economic development Developer Partner • Reasonable land price • Anchor tenant • Trophy property • $85 mm shared • Tower funding mechanisms • 52 story Times Landmarks • Designation New York State • Land proceeds • 42 nd DP completion • Condemnation Funding • Architecture • $85 mm • Commitment to build • 120% Letter of Credit • Renzo Piano New York Times Co. • Ownership • Large floor plate • Times Square • Development expertise • Limit cost overrun risk • Limit speculative risk • Real estate tax risk • Limit 229 disposition risk • Condominium Structure • 80,000 sf base floors • Times Square • Forest City Ratner • 29-year PILOT • Friendly landmarking • Ownership • Large floor plate • Times Square • Development expertise • Limit cost overrun risk • Limit speculative risk • Real estate tax risk • Limit 229 disposition risk • Condominium Structure • 80,000 sf base floors • Times Square • Forest City Ratner • 29-year PILOT • Friendly landmarking • Friendly landmarking Square office tower |
 CB Richard Ellis |
Page 17 CB Richard Ellis | Page 17 CB Richard Ellis | Page 17 620 Eighth Avenue |
 CB Richard Ellis |
Page 18 CB Richard Ellis | Page 18 CB Richard Ellis | Page 18 Sale of 229 West 43rd Street Investment Sales 2004 |
 CB Richard Ellis |
Page 19 CB Richard Ellis | Page 19 CB Richard Ellis | Page 19 Sale of 229 West 43rd Street Investment Sales 2007 |
 CB Richard Ellis |
Page 20 CB Richard Ellis | Page 20 CB Richard Ellis | Page 20 620 Eighth Avenue Agency |
 CB Richard Ellis |
Page 21 CB Richard Ellis | Page 21 CB Richard Ellis | Page 21 620 Eighth Avenue Chronology March 2006 Dechert LLP 190,000 SF |
 CB Richard Ellis |
Page 22 CB Richard Ellis | Page 22 CB Richard Ellis | Page 22 620 Eighth Avenue Chronology March 2006 Landlord ceased negotiation Dechert LLP 190,000 SF |
 CB Richard Ellis |
Page 23 CB Richard Ellis | Page 23 CB Richard Ellis | Page 23 620 Eighth Avenue Chronology March 2006 Landlord ceased negotiation April 2006 Dechert LLP 190,000 SF Covington and Burling 160,000 SF |
 CB Richard Ellis |
Page 24 CB Richard Ellis | Page 24 CB Richard Ellis | Page 24 620 Eighth Avenue March 2006 Landlord ceased negotiation April 2006 June 2006 Dechert LLP 190,000 SF Covington and Burling 160,000 SF Seyfarth & Shaw LLP 96,000 SF Chronology |
 CB Richard Ellis |
Page 25 CB Richard Ellis | Page 25 CB Richard Ellis | Page 25 620 Eighth Avenue March 2006 Landlord ceased negotiation April 2006 June 2006 July 2006 Dechert LLP 190,000 SF Covington and Burling 160,000 SF Seyfarth & Shaw LLP 96,000 SF Osler, Hoskin & Harcourt 60,000 SF Chronology |
 CB Richard Ellis |
Page 26 CB Richard Ellis | Page 26 CB Richard Ellis | Page 26 620 Eighth Avenue Dechert LLP 190,000 SF Covington and Burling 160,000 SF Seyfarth & Shaw LLP 96,000 SF Osler, Hoskin & Harcourt 60,000 SF Legg Mason Inc. 190,000 SF March 2006 Landlord ceased negotiation April 2006 June 2006 July 2006 August 2006 Chronology |
 CB Richard Ellis |
Page 27 CB Richard Ellis | Page 27 CB Richard Ellis | Page 27 620 Eighth Avenue 86% Leased |
 CB Richard Ellis |
Page 28 CB Richard Ellis | Page 28 CB Richard Ellis | Page 28 11 Times Square Investment Sales |
 CB Richard Ellis |
Page 29 CB Richard Ellis | Page 29 CB Richard Ellis | Page 29 11 Times Square Agency |
 CB Richard Ellis |
Page 30 CB Richard Ellis | Page 30 CB Richard Ellis | Page 30 New Jersey |
 CB Richard Ellis |
Page 31 CB Richard Ellis | Page 31 CB Richard Ellis | Page 31 Edison, New Jersey Industrial |
 CB Richard Ellis |
Page 32 CB Richard Ellis | Page 32 CB Richard Ellis | Page 32 The Challenge Discontinue operations at Edison, NJ printing plant Scheduled closing – Summer 2008 • Real estate dispositions – 1.3 million sf leased printing plant – 400,000 sf owned warehouse – 24.9-acre owned land site • Certainty and surety of closing • Quick results but not at financial cost • Minimum disruption for organized plant workers • Utilize portion of warehouse for 5 – 10 years |
 CB Richard Ellis |
Page 33 CB Richard Ellis | Page 33 CB Richard Ellis | Page 33 Complex Dynamics New York Times Co. • Printing plant lease 40% above market • Costly restoration obligation • Prior land sales efforts failed • Labor sensitivities • Real estate tax appeals Landlord • Not a seller; refinancing in-process • Opportunistic - risk adverse The Properties • Highest-and-best-use • Three distinct parcels: • Plant - significant capex to restore • Warehouse - outside tenant; lease below market • Land - development challenged Market Environment • No large land options on NJ Turnpike • Past 5 years, no large offerings of size • Count/size of user requirements • Pensions/institutions underweighted; private equity aggressive |
 CB Richard Ellis |
Page 34 CB Richard Ellis | Page 34 CB Richard Ellis | Page 34 Complex Dynamics New York Times Co. • Printing plant lease 40% above market • Costly restoration obligation • Prior land sales efforts failed • Labor sensitivities • Real estate tax appeals |
 CB Richard Ellis |
Page 35 CB Richard Ellis | Page 35 CB Richard Ellis | Page 35 Complex Dynamics New York Times Co. • Printing plant lease 40% above market • Costly restoration obligation • Prior land sales efforts failed • Labor sensitivities • Real estate tax appeals • Purchase-Flip Strategy • Bundled offers: Sale & monetized lease, conventional sale • Eliminated future risks/contingencies • Preserve prior years’ tax refunds • Flexible leasebacks • Six-month transaction process |
 CB Richard Ellis |
Page 36 CB Richard Ellis | Page 36 CB Richard Ellis | Page 36 Complex Dynamics Landlord • Not a seller; refinancing in-process • Opportunistic - risk-adverse |
 CB Richard Ellis |
Page 37 CB Richard Ellis | Page 37 CB Richard Ellis | Page 37 Complex Dynamics Landlord • Not a seller; refinancing in-process • Opportunistic - risk-adverse • Offer premium over refinancing parity • Position risks and rational pricing on re-renting |
 CB Richard Ellis |
Page 38 CB Richard Ellis | Page 38 CB Richard Ellis | Page 38 Complex Dynamics The Properties • Highest-and-best-use • Three distinct parcels: •Plant - significant capex to restore •Warehouse - outside tenant; lease below market •Land - development challenged |
 CB Richard Ellis |
Page 39 CB Richard Ellis | Page 39 CB Richard Ellis | Page 39 Complex Dynamics The Properties • Highest-and-best-use • Three distinct parcels: •Plant - significant capex to restore •Warehouse - outside tenant; lease below market •Land - development challenged • Package as one site • Long term and short term leasebacks • Position as state-of-the-art facility • Speculative development model |
 CB Richard Ellis |
Page 40 CB Richard Ellis | Page 40 CB Richard Ellis | Page 40 Complex Dynamics Market Environment • No large land options on NJ Turnpike • Past 5 years, no large offerings of size • Count/size of user requirements • Pensions/institutions underweighted; private equity aggressive |
 CB Richard Ellis |
Page 41 CB Richard Ellis | Page 41 CB Richard Ellis | Page 41 Complex Dynamics Market Environment • No large land options on NJ Turnpike • Past 5 years, no large offerings of size • Count/size of user requirements • Pensions/institutions underweighted; private equity aggressive • Promote as unique, 86-acre tract • “Super Buyer” approach • Pre-emptive opportunity • Purchased by KTR Capital Partners |
 CB Richard Ellis |
Page 42 CB Richard Ellis | Page 42 CB Richard Ellis | Page 42 Complex Dynamics New York Times Co. • Printing plant lease 40% above market • Costly restoration obligation • Prior land sales efforts failed • Labor sensitivities • Real estate tax appeals • Purchase-Flip Strategy • Bundled offers: Sale & monetized lease, conventional sale • Eliminated future risks/contingencies • Preserve prior years’ tax refunds • Flexible leasebacks • Six-month transaction process Landlord • Not a seller; refinancing in-process • Opportunistic - risk-adverse • Offer premium over refinancing parity • Position risks and rational pricing on re-renting The Properties • Highest-and-best-use • Three distinct parcels: •Plant - significant capex to restore •Warehouse - outside tenant; lease below market •Land - development challenged • Package as one site • Long term and short term leasebacks • Position as state-of-the-art facility • Speculative development model Market Environment • No large land options on NJ Turnpike • Past 5 years, no large offerings of size • Count/size of user requirements • Pensions/institutions underweighted; private equity aggressive • Promote as unique, 86-acre tract • “Super Buyer” approach • Pre-emptive opportunity • Purchased by KTR Capital Partners |
 CB Richard Ellis |
Page 43 CB Richard Ellis | Page 43 CB Richard Ellis | Page 43 Resolution “Whole” vs. “Sum of the Parts” $92 million Sale
= 25% Incremental Asset Value Created |
 CB Richard Ellis |
Page 44 CB Richard Ellis | Page 44 CB Richard Ellis | Page 44 Leveraging the CBRE Platform |