Vornado Sells 45% Stake in Midtown Retail Portfolio
Vornado Realty Trust has sold a 45.4% stake in its Upper Fifth Avenue and Times Square retail portfolio to Crown Acquisitions Inc. The deal for a newly-formed joint venture values the portfolio at nearly $5.6 billion, and Vornado is retaining 51% of the portfolio’s common equity.
Included in the portfolio are 489,000 square feet of retail, along with 327,000 square feet of office. It encompasses portions of 640, 655, 666, 689 and 697-703 Fifth Ave., 1535 Broadway and 1540 Broadway (pictured).
Vornado is the general partner of the JV formed to own the assets. The REIT expects net proceeds of $1.2 billion, and a tax gain of approximately $735 million.
The JV has assumed a $450-million mortgage loan on 697-703 Fifth. It expects a new $500-million mortgage loan on 640 Fifth to be completed in the near future.
Crown’s Haim Chera has joined Vornado as EVP, head of retail.
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- ◦Financing
- ◦Sale/Acquisition