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Empire State Realty Trust IPO Offers Rare Investment Opportunity


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Details Regarding the Empire State Realty Trust IPO

Empire State Realty Trust IPOYou cannot buy the Brooklyn Bridge, but soon you may be able to buy a piece of the Empire State Building in New York City.  The owner of the Empire State Building, Empire State Realty Trust, Inc., filed for a $1 billion Initial Public Offering (IPO), Empire State Realty Trust IPO for short, in February 2012.  After the Empire State Realty Trust IPO, a piece of the Empire State Building will be available to anyone that buys the stock “ESB” on the New York Stock Exchange (NYSE).

Bank of America Merrill Lynch and Goldman Sachs will act as lead underwriters and managers for the Empire State Realty Trust IPO.  Empire State Realty Trust plans on using the proceeds from the Empire State Realty Trust IPO to repay debt and to complete building upgrades.

The Empire State Realty Trust IPO Outlook

The Empire State Realty Trust IPO will involve more than just the Empire State Building property.  Empire State Realty Trust owns and operates a total of twelve properties in the New York metropolitan area.  Empire State Realty Trust  stated that it needs $55 to $65 million beyond 2013 to complete upgrades at the Empire State Building and other buildings, which will put money from the Empire State Realty Trust IPO to good use by enhancing the value of the company’s real estate holdings.

The 102 story Empire State Building is a 2.8 million-square-foot property that comprises more than a quarter of the approximately 7.7 million square feet of rentable office space that the Empire State Realty Trust owns.  Seven of the Empire State Realty Trust’s properties are in midtown Manhattan and total approximately 5.8 million square feet of office space and 432,000 square feet of retail space.  The remaining five properties owned by the Empire State Realty Trust are located in the suburban New York counties of Westchester County, New York and Fairfield County, Connecticut.

The ultimate success of the Empire State Realty Trust IPO will be dependent upon the performance of the company and the New York area real estate market.  As of its 2010 fiscal year, which is the most current full year the company has reported, Empire State Realty Trust earned $46.1 million, which is an increase of approximately 10% from the $41.8 million in earnings that the company reported for 2009.  After the Empire State Realty Trust IPO, the company plans to focus on renovating their existing real estate portfolio and acquiring and renovating additional office and retail properties in the greater New York metropolitan area, with a continued focus on Manhattan real estate.

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