This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Wednesday's IPO: Empire State Realty Trust

NEW YORK ( TheStreet) -- On Wednesday the Empire State Realty Trust (ESRT - Get Report) listed shares on the New York Stock Exchange. By listing as a real estate investment trust, or REIT, investors have the opportunity to participate and now trade shares in an efficient manner, with full market liquidity.

The new REIT consists of 12 office properties encompassing 7.7 million square feet (around 83.5% leased) and six retail properties, consisting of four free-standing buildings that are 100% leased (excluding the Empire State Building).

The combined portfolio, encompassing around 8.4 million rentable square feet, is located in midtown Manhattan; Fairfield County, Conn.; and Westchester County, N.Y.

The most recognizable property in the REIT portfolio is the Empire State Building, constructed in 1931. At 102 stories tall, the iconic tower was the tallest tower in New York City. The building was developed by a group of prominent businessmen including John Jakob Raskob (founder of General Motors), Coleman Du Pont, Pierre S. Du Pont (president of E.I. Du Pont de Nemours), Louis G. Kaufman and Ellis P. Earle, from Empire State, Inc. and Alfred E. Smith, former governor of New York four times and presidential candidate in 1928.

Ground work for the tower commenced in 1930 and on May 31, 1931, President Hoover pressed a button that turned on the lights, officially opening the building to the public. The tower was sold a couple of times in the 1950s.

Then on Aug. 23, 1961, the building was sold to an investment group headed by Lawrence A. Wien for $65 million -- a price (which did not include the valuable Fifth Avenue land under the structure) that was believed to be the highest ever paid for a single building at that time.

In 2002, Peter L. Malkin, who has previously acquired the land from Donald Trump, purchased the actual building, making Malkin both majority owner and manager of the Empire State Building. However, Malkin was joined in complex partnership that consisted of more than 2,800 shareholders, some dating back to 1961 when Lawrence Wien was the managing partner.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ESRT $18.78 -0.03%
AAPL $124.24 0.00%
FB $83.01 0.00%
GOOG $555.17 0.00%
TSLA $190.41 0.00%

Markets

DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs