NEW YORK -- Verizon New York Inc. announced today an agreement to sell a condominium interest in its 41-story headquarters building at 1095 Avenue of the Americas to Equity Office (NYSE: EOP), the nation's largest publicly held office building owner and manager.
EOP will purchase for $505 million 1,030,000 square feet, or nearly 80 percent of the office tower, including approximately 30,000 square feet of retail space.
Verizon New York would continue to occupy more than 200,000 square feet of the midtown Manhattan tower. The agreement is subject to approval by the New York Public Service Commission and the attorney general of New York.
Verizon Communications (NYSE:VZ), which currently occupies space in the 1095 building, plans to relocate its corporate headquarters to a company-owned building at 140 West St. in lower Manhattan.
Lee Brathwaite, Verizon vice president for corporate real estate, said the company is selling at a good time to a respected buyer: "Verizon felt that this was a great opportunity for the company to realize a return at a time when midtown property is highly valued. As we considered a purchaser, we wanted to make sure we sold to a first-class operation. Equity Office is considered one of the premier real estate firms in the country, and Verizon has a longstanding relationship with Equity Office."
Verizon currently leases about 400,000 square feet from EOP in 17 Verizon locations corporatewide.
At 1095 Avenue of the Americas, EOP plans to renovate and lease as "Class A" office and retail space the portion of the building it is acquiring.
Verizon intends to relocate its world headquarters to its recently renovated building at 140 West St. The 1926 landmark building, formerly the headquarters for New York Telephone, will ultimately house about 1,500 employees, including the principal offices for Verizon CEO and Chairman Ivan Seidenberg, along with his direct reports. Additionally Verizon's board offices will be located there, as will the leadership for the company's domestic telecom unit serving customers in the Northeast.
The company expects to continue to employ about 18,000 employees at various locations in the city's five boroughs.
"New York City is home to millions of our customers and is the financial and economic hub of the nation," said Paul Crotty, Verizon region president for New York and Connecticut. "In addition to retaining our corporate headquarters in the city, Verizon will continue to maintain a work force and a community involvement consistent with the varied needs of our customers and the diverse communities we serve."
With more than $71 billion in annual revenues, Verizon Communications Inc. (NYSE:VZ) is one of the world's leading providers of communications services. Verizon has a diverse work force of more than 210,000 in four business units: Domestic Telecom serves customers based in 29 states with wireline telecommunications services, including broadband and other services. Verizon Wireless owns and operates the nation's most reliable wireless network, serving 43.8 million voice and data customers across the United States. Information Services operates directory publishing businesses and provides electronic commerce services. International includes wireline and wireless operations and investments, primarily in the Americas and Europe. For more information, visit www.verizon.com.