NY Times Co. Signs Expensive Lease on Own Tower

There's still one way to make easy money in this economy: Front The New York Times Co. some cash. You'll get very nice terms.

The Times Co. just announced the completion of a sale-leaseback deal covering a portion of its new headquarters building. WP Carey & Co. LLP and two of its affiliates will provide the Times Co. with $225 million in financing. In return, the publisher will pay an escalating rent that starts at $24 million, with the to buy back the space for $250 million after 10 years.

In January, the Times Co. secured another $250 million in credit on similarly painful terms, borrowing from Mexican billionaire Carlos Slim, who demanded and got a 14 percent interest rate and warrants that will let him acquire 10 percent of the company's class "A" stock.

Update: Okay, so maybe it's not such an expensive lease. Michael Wolff and FT both say the Times's rent comes out to a very cheap $32 per square foot. On the other hand, the $225 million sale price is also way below market value.