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Abu Dhabi buys out Vornado at 330 Madison

Deal values Midtown East building at $900M

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.

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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.

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Vornado Realty Trust