Blackstone is the buyer of Vornado’s 1740 Broadway: sources

$605M deal made through private equity firm's core-plus real estate fund

From left: Blackstone's Jonathan Gray, Vornado's Steven Roth, and 1740 Broadway
From left: Blackstone's Jonathan Gray, Vornado's Steven Roth, and 1740 Broadway

Private equity giant Blackstone Group is the buyer of Vornado Realty Trust’s 1740 Broadway, The Real Deal has learned. Sources familiar with the $605 million transaction said that Blackstone made the buy through its core-plus real estate fund.

Vornado announced the sale of the 26-story, 601,000-square-foot building, located between West 55th and 56th streets, on Monday, but did not reveal the buyer. L Brands, the parent company of lingerie retailer Victoria’s Secret and Bath and Body Works, is the building’s largest tenant, according to CoStar Group data. A source familiar with Blackstone said that the core-plus fund was on the lookout for high-quality assets with stable near-term cash flows, and would continue to look for opportunities in New York and other national gateway markets. Core-plus funds tend to invest in assets with moderate risk and moderate returns, and these assets often require value-add enhancements.

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CBRE Group’s Darcy Stacom and Bill Shanahan brokered the $1,000-per-square-foot deal, but were unavailable for comment Tuesday evening. Representatives for Vornado and Blackstone declined to comment.

Blackstone is shopping around 1095 Sixth Avenue, a 1.2 million-square-foot tower in the Bryant Park area, for north of $2 billion, and has seen interest from buyers such as Norwegian sovereign fund Norges Bank for the property, as TRD reported.