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According to the earnings report conference call last Tuesday, Steinway Hall in New York is in the process of being sold.

The deal is not final, and they wouldn't say who the buyer is, but the price for the building is $56 million. According to Wikipedia, that would be a $6 million loss over what they paid for it in 1999. In discussing the deal, they never referred to Steinway Hall but to the 57th Street property.

Hard to tell what's going on in that company. No new news on selling the band division to the Messina group. They've shelled out at least a couple of million bucks to consultants exploring their "strategic alternatives". Seems like throwing money down the drain.

Sales are down a bit in the U.S., flat in Europe and booming in China and Japan. In the past there was mention that Japan was becoming too expensive and it was hurting Boston sales. No mention of that in the last call.

In the USA they've priced themselves out of the market.

I haven't seen that reported elsewhere yet, but I would not be surprised. I'm glad I visited last month when I did.

According to Bloomberg News- 195m

fingers

The 195 covers the land and building. Steinway Musical Instruments only owns the building.

Played a bunch of new B's today at Fields Piano in Orange County, which has been selling pianos for many years in the LA area and is in the process of converting to a full-fledged Steinway showroom, which will mean Steinway/Boston/Essex only. Anyway played these five new B's, and they were each quite different from the other - as different in sound as different makes of piano are from each other - wondering what others consider the "Steinway sound" to be, if there is such a thing. Also played a 1905 'D' - wonderful old buffalo, full of character.

- Land lease? I've never been too swift in matters concerning real estate.

fingers

I guess the question that comes to mind is that buildings proximity to Carnegie Hall is very convenient for artists and transport of pianos from the basement to Carnegie. I wonder if Steinway will lease space to retain that location?

To Mark - The Steinway sound - lots of overtones

Link

And this in MMR ( Musical Merchandise Review )

Steinway to Sell Landmark Hall
It’s being reported that Waltham-Mass. based Steinway Musical Instruments, Inc. has reached an agreement to sell its building near Manhattan’s Carnegie Hall at 109 W 57th Street for $195 million.

Steinway anticipates proceeds of $56.3 million, of which $20 million will be held in escrow until the company vacates the space it occupies, according to a regulatory filing (LVB) signed by CEO Michael Sweeney. The filing doesn’t specify a buyer or say precisely when or whether Steinway would leave the building. The transaction is expected to be completed before the end of the calendar year, however.

Steinway Hall has been the flagship store of the company’s Steinway & Sons unit, according to its website. The location is described as a Beaux Arts landmark, with a 19th-century Viennese crystal chandelier and ceiling decorated with allegorical scenes of lions, elephants, goddesses and nymphs, painted by artist Paul Arndt.

So does this mean Steinway will no longer have a dealership there or just that the building is being sold and Steinway would rent the space for a dealership there? Or is this undecided/unknown at present? It would be a great shame if Steinway Hall was to close.

Is the 57th dealership the largest Steinway dealership in the world?

This would be very sad news if Steinway Hall were no more. I enjoyed my visits there so much -- glad I went when I did! (and I was treated very nicely even though I was not there to buy).


Sophia

I agree Sophia,

Kathy and I visited Steinway Hall in September, and we too were treated very well.

http://www.pianoworld.com/forum/ubbthreads.php/topics/1966556/

It's a beautiful building and a tradition for piano lovers to visit while in New York (as is Piano Row on W. 58th)

They have a lorry or several, to transport pianos and have the people to handle these matter. They can re establish a dealership anywhere else in Greater New York City or neighbouring cities where it is much cheaper to buy land, build houses or rent them, compared with "Piano Row" W 58th St. in the core of Manhattan near Central Park.

Wasn't there a newly established museum and a giant shop on Long Island, also owned by Steinway & Sons? They can do their business from there.

The business consultants will say: "Concentrate on core business!" & "Cut avoidable costs!"

So a piano scenery landmark might disappear - from Midtown Manhattan, maybe. But will be reestablished at another location. If the Rikers Plant has enough space, they can offer pianos also there.

But maybe Steinway will again rent their formerly owned house? Like they did with Steinway Hall before..?..

If the new owner will not immediately have another purpose for that building, the Steinway business may stay inside on rental basis?

I think I should speed up my plans to go for a visit to the USA.. ;-) ..to see Old Steinway Hall.

...old? First Steinway Hall was established 1866 on 14th Street.

http://en.wikipedia.org/wiki/Steinway_Hall

In this article yet no change is mentioned as intended. Might there be no change? or is it "slow Wikipedia"? ..wondering..

When I was asked to help a NY concert hall pick out a new S&S D about a year ago, it was not Steinway Hall we were taken to, it was their facility in Queens. So clearly some of the selection process already takes place there.

But there's nothing like the cachet of Steinway Hall with its painted domed ceiling, fine furnishings, hushed atmosphere and discreet desks for the staff. I hope they can stay there, even as a rental.

And surely they're not going to ask world-renowned artists to travel to Queens to make their selections!

Could it be that, among perhaps more basic economic reasons their location attracted also many buyers to "piano row" who then did end up not buying from them?

Guarantee the competition ain't very happy with the move.

Steinway for years, had their own, far away location from all others at NAMM show too.

Sadly, a historic New York landmark gone.

Norbert

Probably not as the Piano Row stores have been there for 10-20 years or more. Before that there were Baldwin and Yamaha dealers within one block of Steinway Hall.

They may well be leaving the space, but the sale of the property by itself doesn't necessarily mean that will happen.

Companies frequently continue to occupy all or some space in buildings they dispose of in "sale and leaseback" transactions. Depending on applicable tax and accounting issues, such a deal can end up being financially positive both for buyer and seller.

Good point.
McGraw-Hill (publishing company in NY) did exactly that.
They sold their building, at a profit, and then leased space in it.