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Vornado Takes Control of Marriott Marquis Retail
Vornado Realty Trust has acquired the 46% interest it didn’t already own in the Marriott Marquis’ retail condominium. The REIT paid $442 million to complete buying its ownership of the 45,000-square-foot space in Manhattan’s second largest lodging property from Host Hotels & Resorts. Its basis in the property now totals about $663 million.
The transaction closes the loop on an ownership scenario that began in 2012, when Vornado bought a 54% interest in the Marriott’s retail condo, and redeveloped the property. The original transaction provided that Vornado would become the 100% owner through a put/call arrangement, based on a pre-negotiated formula.
The 1,919-key hotel’s retail is 100% leased to T-Mobile, Invicta, Swatch, Levi’s and Sephora. It also includes the 1,611-seat Marquis Theater leased to the Nederlander Organization, and the largest digital sign in New York with a 330 linear-foot, 25,000-square- foot display. It’s directly across from Vornado’s blockfront retail at 1540 Broadway.
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- ◦Sale/Acquisition
