Steve Roth: 666 Fifth may be the rare case where Vornado is a seller

Firm has omitted the building from company leasing metrics

New York /
Apr.April 10, 2017 12:20 PM

Steve Roth’s TRData LogoTINY Vornado Realty Trust owns 49.5 percent of Kushner Companies’ 666 Fifth Avenue, but could be gearing up to part with the struggling asset.

In his annual letter to Vornado’s shareholders, Roth wrote, “This is an ongoing, complex, dynamic, and unpredictable situation . . . and it is the rare case when we may be sellers.”

Kushner wants to redevelop the Midtown office tower into a 1,400-foot, mixed-use luxury skyscraper, complete with condominiums, a hotel and much more retail. To do that, Kushner would need significant outside investment, in part to buy out Vornado’s stake in the trophy building. Rumors circulated last month that Chinese insurer Anbang was mulling a major play at the tower that would help move Vornado out and include securing a $4 billion loan. By the end of March, however, Kushner said that it had ended any talks of partnering with Anbang.

In the event Kushner finds another investor to turn 666 Fifth Avenue into a $12 billion tower, it appears that Roth is willing to take the money and run: Vornado is not even counting 666 Fifth Avenue in its performance reports anymore.

“We have excluded 666 Fifth Avenue office from our leasing metrics,” Roth wrote, according to the New York Post.  [NYP] — Will Parker

(To see a selection of other properties sold by Vornado, click here)


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)
Free and clear: Vornado pays off debt at 220 CPS
Free and clear: Vornado pays off debt at 220 CPS
What last year’s biggest real estate lawsuits mean for 2021
What last year’s biggest real estate lawsuits mean for 2021
What last year’s biggest real estate lawsuits mean for 2021
Extell's CEO Gary Barnett (Central Park Tower)
Barnett secures $380M mezz financing for Central Park Tower
Barnett secures $380M mezz financing for Central Park Tower
(Photo illustration by The Real Deal)
Hard money, hard decisions: Nonbank lenders face pressure to deal with problem loans
Hard money, hard decisions: Nonbank lenders face pressure to deal with problem loans
Bank OZK CEO George Gleason (Photos via Bank OZK; iStock)
Bank OZK’s Q4 was “strong end to challenging year”
Bank OZK’s Q4 was “strong end to challenging year”
Developers pitch New York City casino
Developers pitch New York City casino
Developers pitch New York City casino
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...