McClatchy sells The News & Observer headquarters to acquisition group
The News & Observer to relocate to new space in downtown Raleigh
McClatchy has announced the sale of its News & Observer downtown headquarters to the Acquisition Group, which is led by Sam and Babak Sotoodeh, for total gross proceeds of $22.0 million. The proceeds may be used by McClatchy to repurchase debt, reinvest in the business, or other uses as determined by its board of directors.
As part of the transaction, The News & Observer will relocate to two floors, including one at street-level, at One City Plaza, in downtown Raleigh, giving the community a front-row view of local digital journalism in the public interest. While the new City Plazaspace is being built out, The News & Observer has an interim lease agreement with the Acquisition Group to remain in its current headquarters location. It is anticipated that the move will take place sometime in the first quarter of 2018.
"We are very excited to be moving into downtown Raleigh office space that supports flexibility, collaboration and makes it easy to engage with the community," said Sara Glines, president and publisher of The News & Observer. "We've been pleased to have Sam Sotoodeh and his AG team working with us to make this a reality."
"Acquisition Group is pleased to have worked with the McClatchy team and is looking forward to expanding its investments and ownership by developing a mixed-use complex on the acquired site in downtown Raleigh," said Sam Sotoodeh, president of Acquisition Group.
McClatchy East, the company's corporate operations located at 111 W Hargett Street, will remain in its current location.