AcquisitionsApr 28, 2026, 04:58 PM
VNO to Acquire 49% Interest in Park Avenue Plaza for $1.1B Valuation
AI Summary
Vornado Realty Trust announced an agreement to purchase a 49% interest in Park Avenue Plaza from Closer Properties. The acquisition values the trophy, Class A office building at $1.1 billion, which Vornado notes is a significant discount to replacement cost. The property is 99% occupied by blue-chip tenants with an 11-year weighted-average lease term and below-market rents. Fisher Brothers will retain its 51% ownership and continue management, with Vornado and Fisher Brothers having joint control over major decisions. The acquisition is expected to close in Q2 2026.
Key Highlights
- VNO to acquire 49% interest in Park Avenue Plaza from Closer Properties.
- Gross asset valuation of the property is $1.1 billion ($950 per square foot).
- Park Avenue Plaza is a 45-story, 1.2 million rentable square foot Class A office building.
- Property is 99% occupied by blue-chip tenants with an 11-year weighted-average lease term.
- VNO's interest is subject to its share of a $575 million loan at a fixed rate of 2.99%.
- Fisher Brothers will retain 51% ownership and continue to manage and lease the property.
- Acquisition expected to close in the second quarter of 2026.