Steinway Musical Instruments (NYSE:LVB) has ceased to be the owner of its iconic Steinway Hall in New York City. The company formally closed a deal to sell the building to a partnership headed by real estate concern JDS Development Group. Steinway received $46.3 million in the acquisition, and will recognize a taxable gain of roughly $22 million.
Steinway Hall is a 16-story edifice housing 247,000 square feet of office and retail space, located on prime Manhattan real estate in the borough's midtown area. It's the longtime home of the company's flagship retail outlet.
The firm doesn't seem to be mourning its loss. It has the right to occupy the building through September 2014 and, subject to agreement on the rent, extend that term for another four months. Besides, in the press release announcing the news, Steinway quoted its CEO Michael Sweeney as saying that the deal "positions us to prepare for the creation of a 21st century Steinway Hall in Manhattan that serves the needs of today's artists and customers just as the West 57th Street building did when it opened in 1925."
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