Kuhn to represent MTA in Coliseum negotiations.James D. Kuhn, chairman of Newmark & Co. and well regarded as a skilled negotiator, has been hired by the Metropolitan Transportation Authority to represent the agency's interests in talks with Boston Properties Boston Properties, Inc. (NYSE: BXP) is a self-managed real estate investment trust (REIT) based in Boston, Massachusetts. Its primary focus is "Class A" office space which it acquires, develops, and manages in the major markets of Boston, New York City, Washington, D.C. regarding the Coliseum Coliseum: see Colosseum. site. Among other deals, Kuhn acted as advisor to Citibank on the pre-packaged bankruptcy sale of 1540 Broadway to Bertlesmann, A.G., and to Saks and Swiss Bank in the valuation of the Swiss Tower Building. John Cunningham John Cunningham or Jack Cunningham may refer to:
(2) See M Technology Association. 1. (messaging) MTA - Message Transfer Agent. , said of their hiring Kuhn at $300 per hour, "We wanted to bring somebody in now that we're down to a serious deadline. We wanted someone to help analyze the numbers. Our objective is not to lease the property. Our objective is to sell the property. We're not interested in a re-use basis, but it is only an alternative if we cannot sell the property." Kuhn has already met with the MTA and representatives of Boston Properties several times in talks that are being closely guarded. None of the parties, including Kuhn, would comment on the actual negotiations. Nevertheless, REW n. 1. A row. has learned that the parties believe that with a March 14 deadline, time is too short to come to an agreement and it may be impossible to structure a deal without Governor Mario Cuomo's personal involvement. The MTA cannot accept a low price without losing face, and as a public agency would have to answer to charges that it may have given up too much for too little. The Governor could step in and bless a certain deal from a budgetary standpoint. Otherwise, it is highly likely the parties will end up fighting in court over the $33.8 million letters of credit, as well as what will happen to the property. Mortimer Zuckerman Mortimer Benjamin "Mort" Zuckerman (born 1937, Montreal, Quebec, Canada) is a Jewish American magazine editor, publisher, and real estate billionaire. He co-founded Boston Properties, Inc. in 1970. He is chairman of the board, and director. , chairman of Boston Properties, has right now on the table an offer of $70 an FAR foot for only the Coliseum portion of the property. Sources say the MTA is hoping to achieve $100 per FAR foot, and so far, no one is moving from their stance. Boston Properties has already agreed to pay the MTA $62.5 million for land to build a 900,000 square foot building at the city's suggestion and is willing to pay a bit more for a larger structure. A tenant, expected to be Weil, Gotshal & Manges, will probably be an equity partner in the building, taking about 650,000 square feet, and its rental would cover a land cost of $70 an FAR foot, up from an initial $50 a foot. Zuckerman has said the actual construction of the building would be $300 million without the land costs. One real estate executive who is waiting for this market to improve or to find a suitable tenant before building another city office tower, agreed with the $300 million figure to put up a building. But then, he noted, rents must cover the building construction costs as well as operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Rents need to be at least $50 per square foot, he said, and right now for prime space they are hovering around $30 per square foot. Currently, Boston Properties is under contract to purchase the entire Coliseum site for $338 million and build a 2.1 million twin-topped office tower of some 57 stories rising 750 feet. That development was held up for nearly eight years by lawsuits that were finally settled this year. The MTA has indicated it would like to at least keep 10 Columbus Circle Columbus Circle, named for Christopher Columbus, is a major landmark and point of attraction in the New York City borough of Manhattan. Completed in 1905 and renovated a century later, it is located at the intersection of Broadway, Central Park West, Central Park South (59th - the current office building - for the moment if necessary, since it is 50 percent occupied by MTA personnel, with another 21 percent rented to outside concerns. It expects to have 10 CC, as the building is known, 81 percent occupied by end of 1994 and 87 percent occupied by 1997. The Triborough Bridge Triborough Bridge, New York City, connecting the boroughs of Manhattan, the Bronx, and Queens. Completed in 1936, it comprises three separate sections—a bridge crossing the East River, a bridge spanning the Harlem River, and a fixed bridge across the Bronx and Tunnel Authority, its sister agency, saves between $12 and $17 per square foot vs. renting comparable space, equivalent to between $4.8 million and $6.9 million per year. MTA officials have stated that the capitalized value capitalized value n. anticipated earnings which are discounted (given a lower value) so that they represent a more realistic current value since projected earnings do not always turn out as favorably as expected or hoped. of this savings approaches $100 million. Cunningham said the MTA's chairman, Peter Stangl, has said he will hold strong to the March 14th deadline unless there are extraordinary circumstances. At that point, the $33.8 million letters of credit from Boston Properties may become the focus of legal action. Actually, there is one phrase that all of the parties have confided to REW: "I'm not too optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op ." |
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