Tribune Company today announced it will purchase real estate currently leased from TMCT, LLC, which includes properties used by the Los Angeles Times, Newsday, Baltimore Sun and Hartford Courant. The company received an option to purchase the real estate for $175 million through the 2006 restructuring of TMCT, LLC.
In addition, Tribune announced the sale of Tribune Studios and related real estate in Los Angeles to Hudson Capital, LLC, for $125 million. The parties also agreed to a five-year lease allowing KTLA-TV to continue operating at the location through 2012.
Tribune plans to use the sale proceeds as part of a like-kind exchange when it closes on its acquisition of the TMCT properties, which is expected in April.
“The sale of the studios and other assets enables us to execute a tax-efficient, like-kind exchange to acquire a very strategic, long-term real estate position in downtown LA at an attractive price,” said Sam Zell, Tribune chairman and CEO. “Further, the TMCT option will help us eliminate rent payments in several key markets.”
Tribune acquired the Hollywood real estate in 1988. The 10.5-acre parcel includes studio, warehouse and related production space, plus several surface parking lots. Tribune Studios, a unit of Tribune Entertainment Company, opened on the site in 2001.