It’s official: CVS won’t move Aetna’s HQ to Meatpacking District

Different tenants will have to fill Vornado, Aurora's 61 Ninth Avenue

New York /
Jan.January 15, 2018 08:01 AM
Mark Bertolini 61 Ninth Avenue

From left: Mark Bertolini and 61 Ninth Avenue

With its $69 billion deal to buy Aetna in the works, CVS has scratched the health insurer’s plans to relocate its headquarters from Connecticut to the Meatpacking District.

“We have no plans to relocate Aetna’s operations from Hartford,” CVS spokesman David Palombi told the Wall Street Journal.

In June, Aetna inked a deal to lease the entire 145,000-square-foot office portion of Aurora Capital Associates and Vornado Realty Trust’s 61 Ninth Avenue. But plans for the relocation were put into question in December when CVS announced it would acquire the company in a $69 billion deal.

Then in January, the New York City Economic Development Corp. nixed its offer of $9.6 million in perks it put on the table to entice Aetna to the Big Apple.

A spokesperson for Aetna told the Journal Friday that the company is reviewing its real estate portfolio, and has not yet made a decision if it will open some sort of office in New York.

Earlier reports suggested that to receive a property tax abatement, Aurora and Vornado would likely structure the deal with Aetna as a tripe-net lease or a leasehold condo. With Aetna out, the developers will likely have to pursue a more traditional leasing structure. Asking rent for the space was $150 a square foot. [WSJ] – Rich Bockmann


Related Articles

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

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

“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

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
Multifamily sector beating the odds

Multifamily sector beating the odds

Multifamily sector beating the odds
The home improvement retailer will stay in it's Flatiron location (Google Maps)

Home Depot extends lease for Flatiron store

Home Depot extends lease for Flatiron store
Hewlett Packard Enterprise Co. CEO Antonio Neri (Unsplash; Hewlett Packard Enterprise)

Hewlett Packard Enterprise leaves Silicon Valley for Texas

Hewlett Packard Enterprise leaves Silicon Valley for Texas
Convention centers are a losing proposition for private developers, but local governments see them as a way to attract business tourism. (iStock)

Convention centers boom despite shows going virtual

Convention centers boom despite shows going virtual
Charlie Kushner and Laurent Morali with Commons at White Marsh Apartments in Maryland (Photos via Sasha Maslov and CommonsatWhiteMarsh)

Kushner looks to unload multifamily properties for $800M

Kushner looks to unload multifamily properties for $800M
arrow_forward_ios

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

Loading...