Vornado pays $278M for 655 Fifth Avenue stake

Vornado Realty Trust is set to acquire a majority interest in 655 Fifth Avenue, a 57,500-square-foot retail and office property at the northeast corner of 52nd Street, the real estate investment trust said.

Vornado will nab approximately 92.5 percent of the property for $278 million, with the other 7.5 percent staying in the hands of Madison Capital, according to the release.

The deal is expected to close in the fourth quarter, according to the release.

High-end designer Ferragamo has leased space at the building, including 50 feet of Frontage On Fifth Avenue, for its flagship store through 2028. Ferragamo also occupies the neighboring building, which it owns.

J. Joseph Jacobson, a partner with Madison Capital, declined to comment.

Information about the brokers associated with the deal was not immediately available. — Julie Strickland