Vornado Acquires 3 East 54th Street, a Premier Plaza District Development Site

Rhea-AI Summary

Vornado Realty Trust (NYSE:VNO) acquired 3 East 54th Street on January 7, 2026, a demolition-ready site on 18,400 sq ft of land for $141 million. Vornado had previously acquired the mortgage in 2024–2025; the loan balance, which accrued to $107 million including default interest and advances, was credited toward the purchase price. The site is as-of-right zoned for approximately 232,500 buildable sq ft and is adjacent to Vornado-owned Plaza District retail and hotel assets. The company intends to promptly demolish existing buildings.

Positive

• Acquisition price of $141 million for a prime Plaza District site
• Credited $107 million loan balance toward purchase, reducing cash outlay
• Site offers ~232,500 buildable sq ft as-of-right for redevelopment
• Adds a contiguous holding near Vornado’s Plaza assets, enhancing district scale

Negative

• Existing loan carried default interest and advances, indicating prior borrower distress
• Planned demolition and redevelopment will require substantial capex and timeline

News Market Reaction

+2.88%

1 alert

+2.88% News Effect

On the day this news was published, VNO gained 2.88%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Acquisition price: $141 million Mortgage balance: $107 million Land area: 18,400 square feet +3 more

6 metrics

Acquisition price $141 million Purchase of 3 East 54th Street development site

Mortgage balance $107 million Loan balance credited toward purchase price at closing

Land area 18,400 square feet Demolition-ready land parcel at 3 East 54th Street

Zoned buildable area 232,500 buildable square feet As-of-right zoning capacity for new development

Prior acquisition price $218 million Purchase of 623 Fifth Avenue office condominium (Sep 8, 2025)

Common dividend $0.74 per share Dividend declared for payment on December 29, 2025

Market Reality Check

Price: $29.02 Vol: Volume 1,494,843 is 10% a...

normal vol

$29.02 Last Close

Volume Volume 1,494,843 is 10% above the 20-day average of 1,353,464 shares. normal

Technical Shares at $33.64, trading below 200-day MA of $37.58 and 25.85% under 52-week high.

Peers on Argus

VNO fell 2.01% with office REIT peers also lower (e.g., KRC -1.93%, SLG -2.29%, ...

VNO fell 2.01% with office REIT peers also lower (e.g., KRC -1.93%, SLG -2.29%, CUZ -3.11%, DEI -3.36%), indicating sector-wide pressure.

Common Catalyst Multiple office REIT peers reported or scheduled earnings-related events and leasing updates, suggesting sector-wide fundamental focus alongside VNO’s asset acquisition.

Historical Context

5 past events · Latest: Dec 08 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 08	Common dividend	Positive	+1.3%	Declared <b>$0.74</b> common dividend with expectations on 2026 payout cadence.
Nov 03	Earnings results	Positive	-4.9%	Reported higher net income and FFO driven by gains and transactions.
Oct 30	Preferred dividends	Positive	-0.6%	Announced quarterly preferred dividends across five preferred series.
Oct 21	Earnings call info	Neutral	+2.3%	Set dates and details for Q3 2025 earnings release and conference call.
Sep 08	Major acquisition	Positive	-1.9%	Closed <b>$218M</b> purchase of largely vacant 623 Fifth Avenue office condo.

Pattern Detected

Recent history shows several positive or income-focused announcements followed by mixed to negative price reactions, especially around earnings and acquisitions.

Recent Company History

Over the past few months, Vornado reported several notable events. A common dividend of $0.74 per share on Dec 8, 2025 coincided with a modest gain. Q3 2025 earnings on Nov 3, 2025 showed improved net income and higher FFO, yet the stock declined. Preferred dividends announced on Oct 30, 2025 and an earnings call scheduling on Oct 21, 2025 produced small moves. The $218M acquisition of 623 Fifth Avenue on Sep 8, 2025 was followed by a price drop, providing context for today’s Plaza District site purchase.

Market Pulse Summary

This announcement adds a demolition-ready Plaza District development site with 18,400 square feet of...

Analysis

This announcement adds a demolition-ready Plaza District development site with 18,400 square feet of land and 232,500 buildable square feet to Vornado’s core Manhattan portfolio. It follows the $218M acquisition of 623 Fifth Avenue, signaling continued concentration in Upper Fifth Avenue and Park Avenue assets. Investors may monitor future disclosures on project scope, leasing strategy, and capital deployment, along with how these developments interact with interest-rate and inflation risks cited in recent filings.

Key Terms

default interest, real estate investment trust, forward-looking statements, form 10-k

4 terms

default interest financial

"the loan balance has accrued to $107 million, including default interest and advances"

Default interest is an extra, higher interest rate that kicks in when a borrower fails to make required payments or otherwise breaches loan terms. Think of it as a penalty interest or late fee that increases the cost of unpaid debt, causing overdue balances to grow faster. Investors care because default interest raises potential recoveries, affects cash flow timing, and signals heightened credit risk that can change a loan or bond's value.

real estate investment trust financial

"Vornado Realty Trust is a fully-integrated equity real estate investment trust."

A real estate investment trust (REIT) is a company that owns and manages income-producing properties—like apartment buildings, shopping centers, offices, or warehouses—and is required to pass most of its rental income to shareholders as dividends. Think of it as a shared property owner: instead of buying a whole building, investors buy a slice of a portfolio that pays regular income and can offer exposure to property values and rental markets without direct management. REITs matter to investors for predictable income, diversification, and liquidity compared with owning physical real estate.

forward-looking statements regulatory

"Certain statements contained herein may constitute “forward-looking statements” within the meaning"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

form 10-k regulatory

"see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended"

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

AI-generated analysis. Not financial advice.

NEW YORK, Jan. 07, 2026 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that it has acquired 3 East 54^th Street, a demolition-ready asset situated on 18,400 square feet of land, for $141 million. Vornado acquired the mortgage on this property in two transactions in 2024 and 2025; the loan balance has accrued to $107 million, including default interest and advances. In connection with the acquisition, the $107 million loan balance was credited towards the purchase price.

The site is located between Fifth Avenue and Madison Avenue on 54^th Street, adjacent to the St. Regis Hotel and prime Upper Fifth Avenue retail properties owned by Vornado. The land is zoned for approximately 232,500 buildable square feet as-of-right and we intend to promptly demolish the existing buildings on the site.

This acquisition further complements Vornado’s nearby Plaza District and Park Avenue holdings of 280 Park Avenue, 350 Park Avenue, 595 Madison Avenue, 623 Fifth Avenue, 640 Fifth Avenue, 689 Fifth Avenue and 1290 Avenue of the Americas.

Vornado Realty Trust is a fully-integrated equity real estate investment trust.

C O N T A C T

Thomas J. Sanelli
(212) 894-7000

Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2024. Currently, some of the factors are interest rate fluctuations and the effects of inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general.

FAQ

What did Vornado (NYSE:VNO) pay for 3 East 54th Street on January 7, 2026?

Vornado paid $141 million for 3 East 54th Street, with a $107 million loan balance credited toward the price.

How large is the 3 East 54th Street site VNO acquired and what can be built there?

The site is 18,400 sq ft of land zoned for approximately 232,500 buildable sq ft as-of-right.

Will Vornado demolish existing buildings at 3 East 54th Street and when?

Vornado intends to promptly demolish the existing buildings on the site following acquisition.

How does the 3 East 54th Street purchase fit Vornado’s existing NYC holdings?

The site is adjacent to Vornado’s Plaza District and Upper Fifth Avenue retail holdings, complementing nearby assets such as 280 Park Avenue and 623 Fifth Avenue.

Did Vornado use cash or a loan offset to complete the 3 East 54th Street purchase?

The purchase included crediting the accrued $107 million loan balance toward the $141 million price, reducing required cash consideration.