Vornado JV to Sell 512 West 22nd Street for $205 Million
Vornado Realty Trust (NYSE:VNO) has announced that its 55% owned joint venture has agreed to sell 512 West 22nd Street, a 173,000 square foot Class A office building, for $205 million. The transaction is expected to close in the third quarter of 2025. The joint venture plans to use a portion of the proceeds to repay the $123.6 million mortgage loan that currently encumbers the property. The sale is subject to customary closing conditions.
Vornado Realty Trust (NYSE:VNO) ha annunciato che la joint venture di cui detiene il 55% ha concordato la vendita di 512 West 22nd Street, un edificio per uffici di Classe A di 173.000 piedi quadrati, per 205 milioni di dollari. La transazione dovrebbe concludersi nel terzo trimestre del 2025. La joint venture prevede di utilizzare una parte del ricavato per rimborsare il mutuo ipotecario di 123,6 milioni di dollari attualmente gravante sulla proprietà. La vendita è soggetta alle consuete condizioni di chiusura.
Vornado Realty Trust (NYSE:VNO) ha anunciado que su empresa conjunta, de la cual posee el 55%, ha acordado vender 512 West 22nd Street, un edificio de oficinas Clase A de 173,000 pies cuadrados, por 205 millones de dólares. Se espera que la transacción se cierre en el tercer trimestre de 2025. La empresa conjunta planea usar una parte de los ingresos para pagar el préstamo hipotecario de 123.6 millones de dólares que actualmente grava la propiedad. La venta está sujeta a las condiciones habituales de cierre.
Vornado Realty Trust (NYSE:VNO)는 55% 지분을 보유한 합작 투자가 512 West 22nd Street라는 173,000평방피트 규모의 클래스 A 오피스 빌딩을 2억 500만 달러에 매각하기로 합의했다고 발표했습니다. 거래는 2025년 3분기에 마무리될 예정입니다. 합작 투자는 매각 대금의 일부를 사용하여 현재 해당 부동산에 설정된 1억 2,360만 달러의 담보 대출을 상환할 계획입니다. 매각은 일반적인 종료 조건에 따릅니다.
Vornado Realty Trust (NYSE:VNO) a annoncé que sa coentreprise détenue à 55 % a convenu de vendre 512 West 22nd Street, un immeuble de bureaux de classe A de 173 000 pieds carrés, pour 205 millions de dollars. La transaction devrait être finalisée au troisième trimestre 2025. La coentreprise prévoit d'utiliser une partie des recettes pour rembourser le prêt hypothécaire de 123,6 millions de dollars qui grève actuellement la propriété. La vente est soumise aux conditions habituelles de clôture.
Vornado Realty Trust (NYSE:VNO) hat bekannt gegeben, dass sein zu 55 % gehaltenes Joint Venture zugestimmt hat, 512 West 22nd Street, ein 173.000 Quadratfuß großes Bürogebäude der Klasse A, für 205 Millionen US-Dollar zu verkaufen. Die Transaktion soll im dritten Quartal 2025 abgeschlossen werden. Das Joint Venture plant, einen Teil der Erlöse zur Rückzahlung des derzeit auf der Immobilie lastenden Hypothekendarlehens in Höhe von 123,6 Millionen US-Dollar zu verwenden. Der Verkauf unterliegt den üblichen Abschlussbedingungen.
- Sale price of $205 million for the office building provides significant liquidity
- Proceeds will help reduce debt by repaying $123.6 million mortgage loan
- Transaction allows Vornado to monetize its 55% stake in the property
- Divestment of a Class A office building reduces the company's premium property portfolio
- Sale may indicate challenges in the office real estate market
Insights
Vornado's $205M office building sale will strengthen its balance sheet while indicating current valuations for Class A NYC office assets.
Vornado's planned sale of 512 West 22nd Street represents a strategic move to monetize a 173,000 square foot Class A office asset in Manhattan's Chelsea district. The
The structure of this deal is noteworthy - as a
This transaction aligns with strategies being employed across the REIT sector to strengthen balance sheets by divesting select office assets while market liquidity exists. The Chelsea submarket location of this property likely contributed to its marketability despite broader office sector challenges. The transaction's expected closing in Q3 2025 suggests reasonable buyer confidence in the property's fundamentals and rent roll stability.
For Vornado, this disposition represents selective pruning of its portfolio while potentially creating liquidity for debt reduction or selective reinvestment. With interest rates and inflation specifically mentioned as risk factors, this transaction reduces Vornado's exposure to these macroeconomic headwinds while demonstrating its ability to execute transactions in a challenging capital markets environment.
NEW YORK, May 14, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that its
A portion of the proceeds will be used by the joint venture to repay the
Vornado Realty Trust is a fully-integrated equity real estate investment trust.
CONTACT
Thomas J. Sanelli
(212) 894-7000
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FAQ
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