10 Facts We Just Learned About The Business Of The Empire State Building

empire state building

Photo: AP Images

Yesterday, the company that owns the Empire State Building, which is controlled by the Malkin family, filed with the SEC in preparation for an IPO.While the news itself isn’t shocking, the family said in November that they planned to take their investment vehicle public. Nor is the total valuation of about $1 billion jaw-dropping.

But by deciding to go public, the family was bound to disclose a ton of information about the business of running one of the most recognised landmarks in the world to the public. Sure, there are a dozen other buildings in the portfolio, but the Empire State Building is the one everyone cares about.

So we dug through the filings (here and here) for the most interesting details. 

 

Empire State Realty, which owns numerous Tri-State properties, made $382 million in revenue first nine months of 2011.

Source: SEC.gov

For the first nine months of of 2011 and the full year 2010, the crown jewel of the company, the Empire State Building, produced $156.7 million and $197.4 million in revenue, respectively

Source: SEC.gov

From 2002 to 2001, the company invested almost $300 million in improving its Manhattan properties and will spend another $55-65 million on the Empire State Building alone

Source: SEC.gov

The Empire State Building makes money in ways most buildings can't. It generated $78.9 million and $16.1 million from its observatory and broadcasting businesses, respectively, in 2010.

Source: SEC.gov

By comparison, annualized rent generated by the building's office and retail properties is $77 million.

Source: SEC.gov

The Empire State building has 2.7 million rentable square feet of office space and 163,655 rentable square feet of retail space. That works out to an average of just under $27 per square foot.

Source: SEC.gov

The Empire State Building accounts for $888 million of the $1.13 billion of goodwill on the company's balance sheet

Source: SEC.gov

Current tenants in the Empire State Building include LF USA, Skanska, the Federal Deposit Insurance Corporation, LinkedIn, Noven Pharmaceuticals, People's Daily Online USA, Turkish Airlines and World Monuments Fund

Source: SEC.gov

The building invested in an energy efficiency retrofit, which will cut energy consumption by 38% and pay for itself in 5 years

Source: SEC.gov

Only Class A shares will be sold in the offering (the family is keeping the Class B shares, which have more voting rights, off the market)

Source: SEC.gov

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