Conde Nast scored a sweetheart deal for its new home at 1 World Trade centre.
The publishing company will pay $1.9 billion over the next $25 years to lease 1 million square feet of the building.
The deal works for everyone. Conde gets a great new office. Port Authority, which owns the building, scores the anchor tenant it desperately needed.
Except Conde almost walked away from the project because of a $1 million ventilation shaft. There were “contentious negotiations” about the location. Conde wanted the cheaper version, while PA’s executives didn’t want to destroy the aesthetics of the building.
As Ketih Kelly reports: “At one point, Newhouse and Chief Operating Officer John Bellando, who was handling the negotiations, threatened to walk away from the project.”
In the end, however, it was all settled and construction was started.
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