AcquisitionsJun 11, 2026, 05:05 PM
Vornado Completes $1.1B Acquisition of 49% Stake in Park Avenue Plaza
AI Summary
Vornado Realty Trust announced the completion of its previously announced acquisition of a 49% interest in Park Avenue Plaza. The property was valued at $1.1 billion, representing a significant discount to replacement cost. This trophy, Class A office building is 99% occupied by blue-chip tenants with an 11-year weighted-average lease term and substantially below-market rents. Vornado acquired its interest subject to its share of a $575 million loan at a fixed rate of 2.99% maturing in November 2031, with Fisher Brothers retaining 51% ownership and management.
Key Highlights
- Vornado completed the acquisition of a 49% interest in Park Avenue Plaza.
- The property was acquired at a gross valuation of $1.1 billion ($950 per square foot).
- Park Avenue Plaza is a 45-story, 1.2 million rentable square foot Class A office building.
- The building is 99% occupied by blue-chip tenants with an 11-year weighted-average lease term.
- Vornado's interest is subject to its share of a $575 million loan.
- The loan bears interest at a fixed rate of 2.99% and matures in November 2031.
- Fisher Brothers retains its 51% ownership and continues to manage and lease the property.
Price Impact
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