McClatchy Sells Miami Waterfront for $236M

The McClatchy Co. (NYSE: MNI) has sold 14 acres of waterfront land for $236 million. The buyer, Bayfront 2011 Property LLC, is a subsidiary of Genting Malaysia Berhad, part of a group of international developers and operators of destination resorts in the U.S., U.K. and Asia.

The site is currently home to Miami Herald Media Co.'s headquarters and an adjacent parking lot. The seven-story waterfront office building totals 604,000 square feet of commercial office space.

The media conglomerate, with titles including The Miami Herald, El Nuevo Herald, several related websites and other media businesses, is entitled to free rent at the site for the next two years as part of a deal struck between the two parties; allowing time to find relocation options.

The buyer plans to redevelop the site into the Resorts World Miami, to include a hotel, convention center, multifamily component, an entertainment facility, restaurants and storefront retail space. The buyer hopes to capitalize on Miami's tourism base and the recent growth in South Florida's retail and residential sectors.

Of the proceeds from the sale, McClatchy plans to put $163 million into the company's pension plan, another $65 million will go to the holders of a 2017 senior secured note, and $2 million will cover transfer taxes related to the sale. The remaining $6 million is to be put in an escrow account for McClatchy after it completely vacates the property.

Please see CoStar COMPS #2117167 for additional information on this transaction.