Vornado Completes Acquisition of 623 Fifth Avenue

Rhea-AI Summary

Vornado Realty Trust (NYSE:VNO) has completed the acquisition of 623 Fifth Avenue office condominium for $218 million. The 36-story building, offering 382,500 rentable square feet and located above the flagship Saks Fifth Avenue department store, is currently 75% vacant.

Vornado plans to undertake a complete repositioning and redevelopment of the property to transform it into a premier, best-in-class, Class A boutique office building. This strategic acquisition aligns with Vornado's focus as a fully-integrated equity real estate investment trust.

Positive

• Strategic acquisition of prime Fifth Avenue location above Saks flagship store
• Significant value-add opportunity with 75% vacancy allowing for complete repositioning
• Large development potential with 382,500 rentable square feet

Negative

• Substantial initial vacancy rate of 75% affecting immediate rental income
• Significant capital expenditure required for repositioning and redevelopment
• Execution risks in current challenging office market conditions

NEW YORK, Sept. 08, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that it has completed the previously announced acquisition of the 623 Fifth Avenue office condominium, a 36-story, 382,500 rentable square foot building situated above the flagship Saks Fifth Avenue department store, for $218 million. The building is currently 75% vacant and Vornado intends to completely reposition and redevelop it into a premier, best-in-class, Class A boutique office building.

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

How much did Vornado (NYSE:VNO) pay for 623 Fifth Avenue?

Vornado paid $218 million for the 623 Fifth Avenue office condominium.

What is the current occupancy rate of Vornado's new Fifth Avenue acquisition?

The building is currently 75% vacant, with only 25% occupancy.

What are Vornado's plans for the 623 Fifth Avenue property?

Vornado plans to completely reposition and redevelop it into a premier, best-in-class, Class A boutique office building.

How large is the 623 Fifth Avenue building acquired by Vornado?

The building is a 36-story property with 382,500 rentable square feet, situated above Saks Fifth Avenue department store.

Where is Vornado's newly acquired property located?

The property is located at 623 Fifth Avenue in New York, positioned above the flagship Saks Fifth Avenue department store.