American Strategic Investment Co. (NYSE:NYC) today announced it has reached an agreement on a term sheet to sell its Midtown Manhattan property, 9 Times Square, for $63.5 million.
The company anticipates that the transaction will close within 120 days following the execution of a definitive purchase and sale agreement.
This announcement follows a recent amendment to the loan secured on 9 Times Square, which extended the maturity date to October 2024, with a potential further extension to the end of 2024 under certain conditions. This extension was strategically planned to facilitate the proposed sale.
Michael Anderson, Chief Executive Officer of ASIC, commented on the agreement, stating, "We expect this sale to generate approximately $13.5 million in net proceeds at closing. The funds will be utilized to pursue our previously announced strategy of asset acquisition and diversification into higher yielding assets."
He also noted that the successful completion of this sale is expected to significantly strengthen the company's balance sheet.
However, ASIC has noted that there is no guarantee that a definitive agreement will be reached on the terms outlined in the term sheet, or at all, underscoring the tentative nature of the current agreement.