Abu Dhabi buys out Vornado at 330 Madison

Deal values Midtown East building at $900M

Jun.June 11, 2019 01:30 PM
From left: ADIA managing director Hamed bin Zayed Al Nahyan, 330 Madison Avenue, and Vornado's Steve Roth (Credit: Getty Images and Google Maps)

From left: ADIA managing director Hamed bin Zayed Al Nahyan, 330 Madison Avenue, and Vornado’s Steve Roth (Credit: Getty Images and Google Maps)

The Abu Dhabi Investment Authority agreed to buy Vornado Realty Trust’s minority interest in 330 Madison Avenue, giving the sovereign fund for the wealthy Middle Eastern emirate full ownership of the property.

The deal values the Midtown East building at just over $1,000 per square foot, or about $900 million. A representative for the ADIA confirmed to The Real Deal that it agreed to buy Vornado’s 25-percent stake through a subsidiary.

Vornado announced the sale Monday, saying it would net approximately $100 million in proceeds from the deal after deducting the property’s $500 million mortgage. It did not name the buyer at the time, but said the “buy/sell process” had been “initiated” by ADIA.

CBRE’s Darcy Stacom and Bill Shanahan brokered the deal.

Major office tenants in the building include Guggenheim Partners, HSBC, and JLL. Retail tenants include Citibank, Starbucks and Santander Bank.

ADIA is one of the world’s largest sovereign-wealth funds, with about $700 billion in assets under management, according to the Sovereign Wealth Fund Institute. It’s the biggest vehicle through which the government of Abu Dhabi manages its nearly $1 trillion investment portfolio. In March, one of those vehicles sold its majority stake in the Chrysler Building for a substantial loss.

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

Vornado Realty Trust’s Steven Roth and 220 Central Park South (Credit: Roth by Bruce Glikas/FilmMagic; Jim.henderson via Wikipedia Commons)

Vornado inks another $52M closing at 220 Central Park South

220 Central Park South (Credit: Google Maps)

Condo at 220 Central Park South sells for $51M

Munich RE CEO Joachim Wenning, ADIA managing director Hamed bin Zayed Al Nahyan and 330 Madison Avenue (Credit: Getty Images, Google Maps)

Munich RE picks up Midtown skyscraper for $900M

From left: L&L Holding Company's 425 Park Avenue with CEO David Levinson, Citadel Securities founder Ken Griffin, and Vornado Realty Trust’s 350 Park Avenue with CEO Steve Roth (Credit: (Photo by Michael Kovac/Getty Images; L&L Holding Company; Vornado)

Citadel Securities expands nearby lease while waiting on 425 Park

The Pennsy Food Hall 

Vornado Realty shutting Pennsy food hall amid $2B redevelopment plans