Tuesday, December 9, 2008

Did the Miami Herald's $190 million land deal collapse?

In October I noted something didn't seem right about the Miami Herald's pending sale of its 10-acre property -- the property had been in escrow for an unusually long time, and, Gary Pruitt sounded tentative when he was asked about the sale by an analyst.

Here is Pruitt's quote from October after he was asked about the deal:
It’s a real estate contract which means we can’t guarantee that that deal will close.
That's the way people talk when something is going sideways. But that was 2 months ago, when things were not as bad as they are now. Since October, the crisis in the financial markets has deepened, and the South Florida real estate market is still slumping. With the news that the Miami Herald is up for sale, speculation is growing that the deal is in limbo.
A deal collapse would be devastating to the Herald because the of the magnitude of the deal -- it's a $190 million deal, and the Miami Herald would have realized $115 million in after-tax profits. Ouch!
If you have more info, leave it in comments.


Anonymous said...

Drudge Report:
Times Co. to borrow against building

By Richard Pérez-Peña
Published: December 8, 2008

The New York Times Company plans to borrow up to $225 million against its mid-Manhattan headquarters building, to ease a potential cash flow squeeze as the company grapples with tighter credit and shrinking profits


Anonymous said...

It's = It + is

Its = The possessive pronoun

Perhaps you should hire a laid-off copy editor to make you look more literate.

Kevin Gregory said...

Anon 6:43 thanks.