Vornado Realty Trust Selling Key Assets

Vornado is sending a clear message that it’s open to making deals.

In recent months, Steve Roth’s REIT has either listed or signaled openness to selling some of its highest-profile assets — from Manhattan’s core to Chicago’s River North to downtown San Francisco. For a firm known for holding tight, it’s a significant shift in posture.

The latest for-sale sign is hanging outside the Architects & Designers Building on East 58th Street, a glassy Midtown fixture filled with luxury showrooms and office space. It joins a growing list: Vornado also just struck a deal to sell its West Chelsea office building, and Roth made headlines by declaring that even Chicago’s Merchandise Mart and San Francisco’s 555 California are up for grabs — if the price is right.

If those buildings were to trade, Vornado’s office portfolio becomes fully concentrated in New York City — a return to its core geography and arguably a bet that Manhattan is still the safest long-term play.

The office sector is still finding its balance post-pandemic. Nationally, vacancy rates have ticked down four quarters in a row, and investor interest is picking up — particularly for Class A buildings in major metros. But the recovery is uneven. Manhattan is showing new life, while San Francisco and Chicago continue to struggle with tenant demand and back-to-office momentum. Even at 555 California, tenant departures on the horizon will pull occupancy below 90 percent for the first time in decades.

Vornado continues to rebalance its portfolio in a volatile office environment. The firm refinanced Penn 11 after chipping in equity, signed Samsung to new space at Penn 1 and is still exploring development or residential options at the long-stalled Penn 15 site. It’s also prepping long-vacant Herald Square retail space for reentry to the market.

Elsewhere, Vornado secured a fresh CMBS loan for its Independence Plaza multifamily complex — a reminder that the company’s strength isn’t limited to office, and that stable residential income may help balance the books.

And while the firm reshapes its footprint, it’s also fending off a different kind of drama: former executive Jared Solomon is fighting embezzlement charges tied to an alleged $9 million scheme involving Vornado’s signage business — adding a wrinkle to an already transformative year.

Whether this moment proves to be a reset or just a reshuffling, one thing is clear: nothing, as Roth put it, is “sacred.”

There was plenty of other real estate news this week. Paramount Group revealed it’s under SEC investigation, a Rodeo Drive retail property fetched a record $400 million and New York’s casino license bidders share contingency plans.

NYC’s major developers are betting they’ll win casino licenses. But what if they don’t?

With only three casino licenses up for grabs and two likely headed to existing slot parlors, NYC’s biggest developers are scrambling to win the final spot or salvage their investments with Plan B. In May, Related Companies dropped its Hudson Yards casino pitch and walked away with a rezoning deal that allows it to build up to 4,000 housing units without footing the $2 billion bill for a platform over the railyards. Related’s pivot signaled a broader trend, as some contenders are now preparing fallback plans that may be more politically viable than gaming.

Troubled Paramount Group reveals it is under SEC investigation

Paramount Group is under SEC investigation over millions in undisclosed payments to companies tied to its CEO, adding regulatory heat to an already embattled office landlord. The probe centers on executive perks, related-party transactions and the firm’s internal controls, and follows Paramount’s admission earlier this year that it funneled money to CEO Albert Behler’s outside businesses.

Rodeo Drive retail property fetches record $400M

A Rodeo Drive property that is leased to Tom Ford, Moncler and Balenciaga stores has sold for over $400 million — a one-property record on the iconic street and the second-highest sale ever in Beverly Hills. The seller was Ronan McNamee’s ECA Capital Limited, which purchased the 28,000-square-foot property in 2007 for $81.5 million. The identity of the buyer wasn’t immediately known.

What happened to Brandon Miller’s portfolio after his death?

A year after Real Estate Equities Corporation co-founder Brandon Miller died by suicide, the boutique office strategy he championed is unraveling. Two REEC buildings, one in East Harlem and another in the East Village, are among the few visible remnants of the once-bustling firm, both largely empty and grappling with leasing and financing challenges.

Subdued son: At the Witkoff Group, CEO Alex Witkoff plays by the rules

Alex Witkoff isn’t like the other real estate heirs. Now that his father, Steve Witkoff, is Special Envoy to the Middle East, the son’s decade-long schooling at the family’s development company, the Witkoff Group, is apparently over. Alex is smart, prepped and trained for a job leading expensive top-of-the-line projects in the nation’s most competitive markets. He thinks of development largely in terms of dollars and cents, and though sources say his passion comes through in the creation of top-tier projects, Alex doesn’t appear to be in it for the glory.

Inside the Ghermezians’ fight to keep $4B American Dream alive in Miami

The Ghermezian family’s $4 billion vision for American Dream Miami, a sprawling indoor theme park and mall anchored by a 16-story ski slope, remains tangled in lawsuits and stalled infrastructure approvals. Triple Five, led by Paul and Don Ghermezian, controls 110 of the 175 acres needed and is fighting both Miami-Dade County and Graham Companies over missed deadlines and a disputed land deal.

Michael Shvo notches win in battle with Core Club

A New York judge ruled this week that Core Club, the exclusive members-only social club, must pay developer Michael Shvo nearly $1 million over a defaulted loan. Shvo had lent the club $750,000 in 2022, expecting repayment once its new location at 711 Fifth Avenue opened, but Core Club failed to pay, sparking a heated legal battle.

Mark Nussbaum deal partner faces Chicago foreclosures

An investor who has made Chicago multifamily deals with embattled real estate attorney Mark Nussbaum is at risk of losing a chunk of his portfolio to financial distress. New York-based Eliazer Tauber, a landlord of dozens of small to midsize apartment complexes on Chicago’s South Side, operated by Straightline Management, is facing at least nine foreclosure lawsuits on buildings that he purchased for far more than the appraised values set by property tax officials.