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Vornado Enters into an Agreement to Sell its Interests in Major Office Condo

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Vornado Realty Trust, a fully integrated equity real estate investment trust, has recently entered into an agreement to sell its 49.5% interests in the 666 Fifth Ave. Office Condominium to its partner, the Kushner Companies.  Net proceeds to Vornado from the sale will be $120 million.

The financial statement gain is estimated to be $134 million and the tax gain is estimated to be $244 million.  Vornado will continue to own all of its 666 Fifth Avenue Retail Condominium encompassing the Uniqlo, Tissot and Hollister stores with 125 linear feet of frontage on Fifth Avenue at 53rd Street.

Concurrently with the sale of Vornado’s interests, the existing mortgage loan on the property will be repaid, and Vornado will receive net proceeds of approximately $58 million for the participation it holds in the mortgage loan.

The contract of sale is conditional, is subject to customary closing conditions and is scheduled to close in the third quarter of 2018.  There can be no assurance that this transaction will be completed.