Blackstone is the buyer of Vornado’s 1740 Broadway: sources

$605M deal made through private equity firm's core-plus real estate fund

TRD New York /
Nov.November 04, 2014 07:10 PM

Private equity giant Blackstone Group is the buyer of Vornado Realty Trust’s 1740 Broadway, The Real Deal has learned. Sources familiar with the $605 million transaction said that Blackstone made the buy through its core-plus real estate fund.

Vornado announced the sale of the 26-story, 601,000-square-foot building, located between West 55th and 56th streets, on Monday, but did not reveal the buyer. L Brands, the parent company of lingerie retailer Victoria’s Secret and Bath and Body Works, is the building’s largest tenant, according to CoStar Group data. A source familiar with Blackstone said that the core-plus fund was on the lookout for high-quality assets with stable near-term cash flows, and would continue to look for opportunities in New York and other national gateway markets. Core-plus funds tend to invest in assets with moderate risk and moderate returns, and these assets often require value-add enhancements.

CBRE Group’s Darcy Stacom and Bill Shanahan brokered the $1,000-per-square-foot deal, but were unavailable for comment Tuesday evening. Representatives for Vornado and Blackstone declined to comment.

Blackstone is shopping around 1095 Sixth Avenue, a 1.2 million-square-foot tower in the Bryant Park area, for north of $2 billion, and has seen interest from buyers such as Norwegian sovereign fund Norges Bank for the property, as TRD reported.

Related Articles

Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

Free and clear: Vornado pays off debt at 220 CPS

Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call

Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue

Facebook CEO Mark Zuckerberg and Apple CEO Tim Cook with a rendering of the Farley development (Credit: Getty Images, SOM iStock)

Facebook facing off with Apple over space in Vornado’s Farley Building conversion

Here’s a look at Blackstone’s industrial plays after its record-breaking portfolio purchase

From left: Jonathan Gray and Steve Schwarzman with Stuyvesant Town

Behind Blackstone’s “capital strike”

220 Central Park South and Michael Cantanucci (Credit: Getty Images and Google Maps)

Car dealer drops $38M for condo at 220 CPS

October Issue is Live

The Real Deal‘s October issue is now available to subscribers!