Steinway to Sell West 57th St. Showroom to Condo Developer

Wednesday, March 27, 2013 - 08:00 AM

Steinway Musical Instruments Inc. is selling its stake in the Steinway Hall building in New York to JDS Development Group for about $46 million.

The musical instrument maker said Tuesday that 247,000-square-foot, 16-story office building is home to its flagship retail showroom. Steinway Hall opened in 1925 and is located on West 57th St. in Manhattan.

The deal gives Steinway, which is best known for its pianos, the right to occupy the building rent free for 14 months after closing and to extend the occupancy an additional four months subject to an agreed upon rent.

Steinway expects cash proceeds of about $43 million from the sale at closing after paying transfer taxes. It expects to recognize a taxable gain of $22 million once the deal closes. The transaction is expected to close in the second quarter.

Chairman and CEO Michael Sweeney said in a statement that part of the company's decision to sell its stake in the building came from the significant investment needed to maintain the building's infrastructure and appearance.

Sweeney said that over the next year or so the company will be working on creating plans for a new Steinway Hall in Manhattan.

Steinway's stock added 44 cents, or 1.9 percent, to $23.50 in morning trading Tuesday. Its shares have traded in a 52-week range of $20.61 to $26.70.

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Comments [8]

Rita from Upper Manhattan

Maybe if we're lucky, they'll put up another Starbucks or Gap or Bank of America or Duane Reade! Or maybe all of them!! It's too bad that NYC is becoming this bland, mall-like city, with no personality and no style. Really, if you take away the iconoclastic shops and the small businesses and sell out to developers who put up chrome and glass buildings and more chain stores, then NYC might as well be a Midwestern suburb.

Apr. 03 2013 02:13 PM
RhodySpear

Yup! Gotham City is NO LONGER a civilized town!! Steinway Hall gone to greed and avarice? Didn't that dilitante Nero burn Rome for the building a new decadent palace? So history does repeat, doesn't it?

Mar. 31 2013 07:59 AM
CoolObserver from Manhattan, New York

So very, very sad. These vultures who consume the city for their own profit and with little regard to history, art, culture or humanity. They pretend or convince themselves that they are doing something great when all they are in fact doing is parasitically cashing in and living off the perks of the city and grossly overcharging in what they misrepresent as a "free market." AND, the worst part is that this incredibly profitable business: real estate, gets all kinds of write offs, deductions, concessions, perks and abatements from the government --our money, while they cry (or laugh) all the way to the bank! One-fifth of all of Cuomo's campaign chest came from the real estate industry, so they buy politicians too. New York is truly disgusting, anti-social and inhumane in this regard. And their endless greed will one day kill the golden goose.

Mar. 29 2013 10:15 PM
Floria from NYC

Oh, well, nothing seems to be sacred anymore. Gone with G. Schirmer, Patelsons, Franks, how about the old Penn Station...... I guess I don't even care anymore. Why should I?

Mar. 28 2013 01:25 PM
adele from stamford

The Steinway,
kinda says it all

Mar. 28 2013 06:51 AM
adele from stamford

The Steinway,
kinda says it all

Mar. 28 2013 06:51 AM
WQXR

@David - That's a good start!

Mar. 27 2013 04:09 PM
David from Flushing

I suppose WQXR could request suggestions for the name of the proposed condo building. "The Steinway" is perhaps too obvious, but how about "The Crescendo" or "The Ivories"?

Mar. 27 2013 03:05 PM

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