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Vornado Sees ‘Handshake’ Deal to Sell 666 Fifth Stake
Vornado Realty Trust’s chairman said Friday the REIT has reached a tentative agreement to exit its 49.5% stake in 666 Fifth Ave. “I believe we now have a handshake to sell our interest to our partner at a price which will repay our investment plus a mezzanine type return,” Vornado chairman Steven Roth wrote in his annual letter to investors, without citing a dollar amount.
“While not the outcome we expected going in, it’s now the appropriate outcome for us and for our partner,” wrote Roth. Vornado acquired its stake in the office tower from Kushner Companies in 2011, after the 2008 downturn put the property into special servicing. Kushner had paid a then-record $1.8 billion for 666 Fifth in 2007.
“This situation continues to be fluid—there can be no assurance that a final agreement will be reached or that a transaction will close,” Roth wrote. Vornado will continue to own 666 Fifth’s retail space.
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- ◦Sale/Acquisition
