Walt Disney Co. signage is projected during the D23 Expo 2017 in Anaheim, California, U.S. (Photographer: Patrick T. Fallon/Bloomberg)

Disney Enters $650 Million NYC Deal for Offices at Hudson Square

(Bloomberg) -- Walt Disney Co. agreed to sell its offices on the Upper West Side of Manhattan and purchase rights to another site, which will become the entertainment giant’s new New York campus.

The company is selling its West 66th Street location and related buildings for $1.15 billion to Silverstein Properties Inc. and is acquiring 99-year rights for land at 4 Hudson Square from Trinity Church Wall Street in a separate transaction valued at $650 million.

“This move represents an historic step forward toward our long-term vision for our New York operations,” Chief Executive Officer Robert Iger said Monday in a statement announcing the purchase. “The Hudson Square district is rapidly becoming a dynamic, innovative hub for media, technology and other creative businesses.”

Disney plans to build a new, high-tech facility and consolidate much of its New York TV production there, according to the company. The site will be home to ABC News shows such as “The View,” the local affiliate WABC, and new video-streaming operations presently at Chelsea Market. “Good Morning America” will stay in Times Square.

Disney’s real estate brokers were from Eastdil Secured, while Trinity was represented by CBRE Group Inc.

The sale of the Upper West Side properties doesn’t include the nearby Armory building. It’s scheduled to close Tuesday. Silverstein Chief Executive Officer Marty Burger said the company intends to “work collaboratively with all our stakeholders” on the future of the West Side properties.

©2018 Bloomberg L.P.

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