Vornado to net $120M from 666 Fifth stake sale

REIT announces deal with Kushner Companies

TRD New York /
Jun.June 01, 2018 05:37 PM

666 Fifth and Steve Roth (Credit: Twitter)

It’s official: Vornado Realty Trust is selling its stake in 666 Fifth Avenue.

The real estate investment trust announced Friday that it reached an agreement to sell its 49.5-percent interest in the office tower to Kushner Companies for “net proceeds” of $120 million. The release didn’t mention Brookfield Property Partners, which is reportedly in talks to take over Vornado’s stake.

Vornado will also receive $58 million from a refinancing of the tower’s mortgage, in which it holds a participation.

Vornado previously announced a “handshake deal” to sell its stake. Brookfield and Kushner plan to redevelop the property. “The plan entails making this 1957 [office] building into a 2018 [office] building with floor-to-ceiling windows, convector units, reskinning the building, upgrading elevator, lobby, and really making this a building of the quality equivalent to the triple-A location where it sits,” Charles Kushner told The Real Deal during a recent interview.

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

Kushner goes to Broward, buying site near Fort Lauderdale train station

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

Car dealer drops $38M for condo at 220 CPS

Facebook CEO Mark Zuckerberg and a rendering of the Farley Post Office building redevelopment (Credit: Getty Images, SOM)

Facebook in talks for massive lease at Vornado’s Farley Building

Vornado president Michael Franco and 512 West 22nd Street (Credit: VNO)

WarnerMedia to anchor Vornado’s West Chelsea spec office

From left: 220 Park Avenue South, 15 Central Park West, 520 Park Avenue, 35 Hudson Yards, Sting, Juan Beckmann Vidal, Daniel Och, Bob Diamond, and Stephen Ross (Credit: Getty Images, Wikipedia, StreeEasy, and Google Maps)

Serial buyers trade “old” condos for new on Billionaires’ Row