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

TRD 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

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

11 Penn Plaza and Apple CEO Tim Cook (Credit: Vornado, Getty Images)

Apple is in talks for a lease at Vornado’s 11 Penn Plaza

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

Abercrombie and Fitch CEO Fran Horowitz and an aerial view of 600 Broadway, blocked by 606 Broadway (Credit: Getty Images, Google Maps)

The curious case of 600 Broadway

250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years