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Vornado Reaches Agreement to Exit 666 Fifth Office Stake
Vornado Realty Trust has reached an agreement to exit its partnership with Kushner Companies in the office condominium at 666 Fifth Ave., selling its 49.5% interest in the troubled office tower back to Kushner for net proceeds of $120 million. The REIT acquired its stake in late 2011, paying $80 million and assuming half the property’s $1.2-billion mortgage debt, nearly two years after 666 Fifth went into special servicing as a result of the 2008 downturn.
Concurrently with the sale of Vornado’s interests, the existing mortgage loan—due to mature next February—will be repaid. Vornado said Friday it would receive net proceeds of approximately $58 million for the participation it holds in the mortgage loan. It continues to own the retail space at 666 Fifth.
Kushner and Brookfield reportedly are in talks about partnering on the property, for which Kushner paid a then-record $1.8 billion in 2007.
For comments, questions or concerns, please contact Paul Bubny
- ◦Sale/Acquisition
