Tribune Company today announced that it has completed the purchase of real estate formerly leased from TMCT, LLC, including properties used by the Los Angeles Times, Newsday, Baltimore Sun and Hartford Courant. The transaction enables the company to eliminate $24 million in annual lease payments.
The company received an option to purchase the property for $175 million as a result of the 2006 restructuring of TMCT, LLC. The purchase is structured as a like-kind exchange, with Tribune using the proceeds from its sale of the Tribune Studios real estate in Los Angeles, announced in January, and from the sale of additional property in Stamford and Greenwich, Connecticut.
“This tax-efficient transaction gives us complete control over some very strategic real estate assets in major markets around the country, particularly in downtown Los Angeles,” said Stephanie Pater, Tribune’s director of real estate. ”At the same time, we eliminate our annual lease payments and save a substantial amount of money.”
In explaining the apparent lack of humor in today’s announcement, Pater added, “We never joke about real estate — it’s made our Chairman and CEO one really rich dude.”