McClatchy on Thursday announced it closed the sale of The Sacramento Bee building and The Kansas City Star’s office building in deals that, combined, the company said will net it $56 million.
Separately, McClatchy announced that its Class A common stock has been approved for listing on the NYSE American LLC (“NYSE American”), and the listing will be transferred from the New York Stock Exchange (“NYSE”).
The Sacramento-based publisher of The Sacramento Bee and 29 other newspapers said the deal specifies that the newspaper lease the building back from its new owner over 15 years. The lease also includes McClatchy’s corporate headquarters, part of the widespread facilities at 2100 Q St.
The buyer of the 65-year-old building is Shopoff Advisors LP, an affiliate of Irvine real estate investment firm Shopoff Realty Investments. McClatchy has the option to buy back the building when the lease expires.
The proposed deal was announced in January this year.
In the listing transfer, the Company’s Class A shares will continue to trade under the symbol “MNI.” McClatchy shares are expected to begin trading on the NYSE American on September 12, 2017 and will continue to trade on the NYSE’s “Big Board” until that time. The NYSE American is an enhanced market for small to mid-cap companies that more closely reflects McClatchy’s capital structure.
McClatchy recently has been selling real estate assets throughout the chain, amassing cash amid falling print advertising revenue, a complex transition to a digital media company and continued efforts to pay down debt associated with its 2006 takeover of newspaper chain Knight Ridder Inc. for $4.4 billion.
The sell-off efforts also included the December 2016, $5.75 million sale of The Sacramento Bee parking garage to Sacramento developer Sotiris Kolokotronis, who plans to construct an apartment building on the site adjacent to the main Bee building at 21 and Q streets.