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Vornado Scales Back Pricing Objective on Towers in NYC, SF
Vornado Realty Trust is scaling back pricing expectations for its 70% stake in 1290 Ave. of the Americas in Midtown Manhattan and 555 California St. in San Francisco, which Green Street Advisors valued at about $2.6 billion.
“Given investor caution, it does not look like we’re going to achieve our original top-tier pricing objective,” Vornado chairman and CEO Steven Roth said on an earnings call Wednesday.
He added, “Nevertheless, we continue to actively pursue a transaction involving these assets, which may take the form of a sale, a partial sale, a joint venture or a refinancing.”
The REIT said in June it had begun exploring options to recapitalize the 2.1-million-square-foot 1290 Sixth Ave. and the 1.8-million-square-foot, three-building 555 California. President Donald Trump’s company holds the remaining 30% stake in both.
Responding to an analyst’s question on Wednesday, Roth said, “obviously, these are important assets” and will command “acceptable values.”
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- ◦Sale/Acquisition
