York Newspaper Co. facility for sale
The York Newspaper Co.'s headquarters is for sale for $3.5 million.
Parent MediaNews Group, which trades as Digital First Media, is selling the facility and 50 other properties across multiple states in an effort to raise capital, according to Twenty Lake Holdings, the company’s real estate manager, and Praxis Commercial, the company’s real estate broker.
According to the Praxis listing, YNC would enter into a five-year leaseback at a uniform rate of $3.50 triple-net lease, or $339,500 per year. That works out to a 9.7 percent capitalization rate, according to the listing.
“Win-Win for any investor,” the listing reads.
The 1891 Loucks Road site, in West Manchester Township, is 97,000 square feet and sits on just over 12 acres, according to Praxis’s listing. Of the building space, about 37,000 square feet is office and the rest is warehouse.
It currently is home to the newsrooms of the York Dispatch and the York Daily Record/Sunday News, as well as the sales and circulation functions handled by the York Newspaper Co. through a joint operating agreement between the newspapers.
Lori Goodlin, editor of the Dispatch, referred comment to Sara Glines, editor and publisher of the Daily Record/Sunday News.
“We’re not going anywhere,” Glines said, referring to the operations of the two newspapers and YNC. “This is part of a corporate stratety to get out of the real estate business.”
She said that the terms suggested on the Praxis site do not mean Digital First has a five-year plan to move the operations from the building.
Messages left for representatives at Twenty Lake were not returned.
The YNC headquarters isn’t the only Digital First property for sale in the midstate.
“All of our real estate is for sale,” Glines said. “In most cases, it’s because the printing is no longer done in those locations. There was a need to downsize those physical locations.”
Digital First Media recently sold The Evening Sun building in Hanover. Plans are in the works to relocate the staff in the near future.
Digital First also has listed the former York Dispatch office on North George Street, the Public Opinion building in Chambersburg and the Lebanon Daily News building in Lebanon. While potential buyers have toured the facilities, no sale is imminent, Glines said. Other properties for sale are in Arkansas, California, Colorado, Massachusetts, Minnesota, New Mexico, Texas and Vermont.
“The strategy outlined by Twenty Lake Holdings and Praxis Commercial enables us to streamline our real estate portfolio through a comprehensive program encompassing property sales, new leasing, relocations and consolidation, thereby freeing the company from the constraints of being overburdened with underutilized properties,” Steve Rossi, Digital First president and COO, said in a news release from Twenty Lake.
Digital First Media, headquartered in Denver, is the second largest newspaper company in the country by daily circulation and reaches more than 67 million Americans monthly across 18 states, according to the company.
“Since 2012, Twenty Lake Holdings and Praxis Commercial have facilitated the sale of 67 properties, generating significant capital for other Digital First Media business needs,” Joseph M. Miller, president of Twenty Lake and Praxis Commercial, said in the release. “With these listings, the companies have 70 newspaper buildings for sale with $85 million in combined value.”
In May, the Dispatch offered buyouts to eight employees to help trim budget costs. The Daily Record managed to trim costs through attrition and other measures.