--The News & Observer to Relocate to New Space in City Plaza in Downtown Raleigh--
SACRAMENTO, CALIF., November 30, 2017 -- McClatchy announced today 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 maybe 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.
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McClatchy is publisher of iconic brands such as the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News & Observer,and the (Fort Worth) Star-Telegram. McClatchy operates 30 media companies in 14 states, providing each of its communities with high-quality news and advertising services in a wide array of digital and print formats. McClatchy is headquartered in Sacramento, Calif., and listed on the New York Stock Exchange American under the symbol MNI.
About Acquisition Group
Acquisition Group is a privately held diversified investment firm based in California and active internationally. In Raleigh, the firm owns Two Hanover Square. The investment team is led by Messrs. Sam Sotoodeh, Craig Shimomura and Tim Nelson.
Jeanne Segal, Director, PR & Communications