Westwood One Sells, Leases Back Culver City Buildings
December 10, 2009 at 12:04 PM (PT)
WESTWOOD ONE has notified the SEC that it is selling its three buildings in CULVER CITY, CA and leasing the offices back. The buildings at 8944, 8965, and 8935 Lindblade Street are being sold to NLC-LINDBLADE, LLC, along with WESTWOOD ONE's parking rights in a nearby lot, for $8.25 million, with $673,000 held back in escrow for repairs. WESTWOOD ONE says it will net about $6.8 million from the deal, and will use $3.5 million to pay down its Senior Notes. The sale is expected to close on DECEMBER 17th.
As part of the deal, WESTWOOD ONE will lease the properties for ten years with two five-year renewal options, at an annual base rental rate of about $875,000 plus operating expense reimbursement, including a 2% management fee. After the first year, the company will pay increases of 3.5% in years 2-5 and the greater of 3.5% or the increase in the Consumer Price Index in years 6-10.
New Director, Too
The company has also added GORES GROUP COO JOSEPH P. PAGE to its Board of Directors, filling a slot left open when IAN WEINGARTEN resigned from GORES RADIO HOLDINGS LLC and the WESTWOOD ONE board.