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Vornado Partnership Finalizes Sale of West Chelsea Offices
Vornado Realty Trust said that its 55% owned joint venture with the Albanese Organization has completed the previously announced sale of 512 W. 22nd St., a 173,000-square-foot Class A office building in West Chelsea, for $205 million. Although Vornado did not disclose the buyer, published reports identified it as Argentina-based RAGHSA Real Estate, which reportedly borrowed $130 million from JPMorgan Chase for the acquisition.
The pending sale was first announced in May. Vornado and Albanese completed the property, located between Tenth and Eleventh avenues, in 2018. Its current tenant roster includes IMG Worldwide, Kenneth Cole Productions and Warner Media.
After repayment of the $123-million mortgage loan encumbering the property and transaction expenses, Vornado’s share of the net proceeds is approximately $38 million. The REIT said it expects to recognize an approximate $11-million financial statement gain from the sale in the third quarter.
- ◦Sale/Acquisition
