OLD Media Moves

Unit of Forbes stops paying rent on building

November 9, 2012

Posted by Chris Roush

Craig Karmin of The Wall Street Journal reports that a unit of Forbes — a completely separate non-Forbes Media entity — has stopped paying rent on a Fifth Avenue building space (90 Fifth Ave.) in Manhattan.

Karmin writes, “Because of those missed payments, Atlanta-based real-estate investor Jamestown is likely to walk away from an agreement to acquire the building for about $115 million, these people say. Forbes stopped paying its rent shortly after Jamestown agreed to buy the property in July, people say.

“Forbes Media spokeswoman Mia Carbonell declined to comment on whether or not a Forbes unit had missed rent payments at the building.

“But she said Forbes Media ‘is on solid financial footing, and the company is profitable.’

“The building is owned by New York real-estate developer RFR, which is exploring legal options, according to a person with knowledge of the situation.

“Forbes moved its online staff, video team and other employees out of the building a while ago. But it still has a lease there that runs to 2020 for about 110,000 of the building’s 140,000 square feet, people said.

“A unit of Forbes Inc. has been paying roughly $8 million a year to rent the space, said a person with knowledge of the property. That price is above market for that part of the city, some brokers said.”

Read more here.

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