Vornado Realty Trust to Purchase 623 Fifth Avenue
Vornado Realty Trust (NYSE:VNO) has announced plans to acquire the 623 Fifth Avenue office condominium for $218 million. The 36-story building, spanning 382,500 rentable square feet, is situated above the flagship Saks Fifth Avenue department store.
The property, currently 75% vacant, will undergo a complete repositioning and redevelopment to become a premier Class A boutique office building. The acquisition is expected to close in September 2025, with redevelopment completion and tenant delivery scheduled for 2027. The building will complement Vornado's existing Plaza District and Park Avenue portfolio, which includes several prestigious properties.
Vornado Realty Trust (NYSE:VNO) ha annunciato l'acquisizione del condominio per uffici al 623 Fifth Avenue per 218 milioni di dollari. L'edificio di 36 piani, con 382.500 piedi quadrati affittabili, si trova sopra il negozio principale Saks Fifth Avenue.
La proprietà, attualmente vacante al 75%, verrà completamente riposizionata e riqualificata per diventare un edificio boutique di classe A. L'acquisizione dovrebbe concludersi a settembre 2025, con il completamento della riqualificazione e la consegna degli spazi ai locatari prevista per il 2027. L'immobile andrà a integrare il portafoglio di Vornado nella Plaza District e su Park Avenue, che comprende diversi immobili prestigiosi.
Vornado Realty Trust (NYSE:VNO) ha anunciado planes para adquirir el condominio de oficinas en 623 Fifth Avenue por 218 millones de dólares. El edificio de 36 pisos, con 382,500 pies cuadrados arrendables, se sitúa sobre la tienda insignia Saks Fifth Avenue.
La propiedad, actualmente con una tasa de vacancia del 75%, se someterá a un completo reposicionamiento y rehabilitación para convertirse en un edificio boutique de Clase A. La adquisición se espera que se cierre en septiembre de 2025, y la finalización de la rehabilitación y la entrega a los inquilinos están previstas para 2027. El edificio complementará la cartera de Vornado en Plaza District y Park Avenue, que incluye varias propiedades de prestigio.
Vornado Realty Trust (NYSE:VNO)는 623 Fifth Avenue 오피스 콘도미니엄을 2억1,800만 달러에 인수할 계획이라고 발표했습니다. 36층 규모의 이 건물은 임대 가능 면적 382,500평방피트에 달하며 Saks Fifth Avenue 본점 위에 위치해 있습니다.
현재 공실률 75%인 이 부동산은 프리미엄 클래스 A 부티크 오피스 건물로 전면 재구성 및 재개발될 예정입니다. 인수는 2025년 9월에 완료될 것으로 예상되며, 재개발 완료 및 임차인 인도는 2027년으로 계획되어 있습니다. 이 건물은 여러 유명 자산을 포함한 Vornado의 Plaza District 및 Park Avenue 포트폴리오를 보완할 것입니다.
Vornado Realty Trust (NYSE:VNO) a annoncé son intention d'acquérir le condominium de bureaux au 623 Fifth Avenue pour 218 millions de dollars. L'immeuble de 36 étages, offrant 382 500 pieds carrés louables, se situe au-dessus du grand magasin phare Saks Fifth Avenue.
La propriété, actuellement vacante à 75%, fera l'objet d'un repositionnement et d'une réhabilitation complets afin de devenir un immeuble de bureaux boutique de classe A. La clôture de l'acquisition est prévue pour septembre 2025, et l'achèvement des travaux ainsi que la livraison aux locataires sont programmés pour 2027. L'immeuble viendra compléter le portefeuille de Vornado dans la Plaza District et sur Park Avenue, qui comprend plusieurs biens prestigieux.
Vornado Realty Trust (NYSE:VNO) hat Pläne bekanntgegeben, das Office-Condiminum in der 623 Fifth Avenue für 218 Millionen US-Dollar zu erwerben. Das 36-stöckige Gebäude mit 382.500 vermietbaren Quadratfuß liegt über dem Flaggschiff-Kaufhaus Saks Fifth Avenue.
Die Immobilie, derzeit zu 75 % leerstehend, soll vollständig neu positioniert und umgebaut werden, um ein erstklassiges Boutique-Bürogebäude der Klasse A zu werden. Der Abschluss der Übernahme wird für September 2025 erwartet, die Fertigstellung der Umgestaltung und die Übergabe an Mieter sind für 2027 geplant. Das Gebäude wird Vornados bestehendes Portfolio in der Plaza District und auf der Park Avenue ergänzen, zu dem mehrere renommierte Objekte gehören.
- Strategic acquisition in prime Manhattan location with protected views of Midtown
- Opportunity to transform 75% vacant property into Class A boutique office space
- Complementary addition to existing premium Manhattan portfolio
- Relatively quick development timeline with delivery by 2027
- Significant capital investment required for complete repositioning and redevelopment
- 75% vacancy rate in current building state
- Exposure to interest rate fluctuations and inflation risks
- No immediate revenue generation due to redevelopment period
Insights
Vornado's $218M acquisition of mostly-vacant Fifth Avenue property represents strategic expansion in Manhattan's premium office market despite challenging office environment.
Vornado's agreement to purchase the 623 Fifth Avenue office condominium for
The 75% vacancy rate of the building presents both a challenge and opportunity. Vornado isn't simply acquiring an income-producing asset but is betting on its ability to transform the property through comprehensive redevelopment into a "premier, best-in-class, Class A boutique office building" by 2027.
This acquisition perfectly complements Vornado's existing Plaza District and Park Avenue holdings, which include prestigious properties like 280 Park Avenue, 350 Park Avenue, and 1290 Avenue of the Americas. The purchase reflects Vornado's confidence in the long-term value of prime Manhattan office space despite current market uncertainties.
The
Vornado Realty Trust
623 Fifth Avenue
NEW YORK, Aug. 25, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that it has entered into an agreement to purchase 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
The building is currently
Vornado expects to close the acquisition in September 2025 and complete the redevelopment for delivery to tenants in 2027.
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.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/348c405b-31ea-4fbb-b0c1-f11fa056e59d
FAQ
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