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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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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Financing
  • ◦Sale/Acquisition
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