Vornado’s Retail JV Enters into $350 Million Transaction with UNIQLO
August 05 2024 - 4:10PM
Vornado Realty Trust (NYSE:VNO) announced today that its 52% owned
street retail joint venture has entered into an agreement to sell
UNIQLO the portion of its U.S. flagship store at 666 Fifth Avenue
owned by the retail joint venture for $350 million. The joint
venture owns the fee condominium interest in 17,295 square feet
(6,477 square feet at grade) of UNIQLO’s 90,732 square foot store.
In conjunction with the closing, the pass-through leases between
the office condominium owner and the retail joint venture will be
terminated.
The joint venture will continue to own 23,832
square feet of retail space (7,416 square feet at grade) at 666
Fifth Avenue consisting of the Abercrombie & Fitch and Tissot
stores.
All of the estimated $340 million of net
proceeds from the sale are expected to be used to partially repay
Vornado’s $390 million of preferred equity on the asset.
The sale is subject to customary closing
conditions and the concurrent closing by UNIQLO of its separate
transaction with the office condominium owner for the remainder of
its store and is expected to close once the formation of the new
condominium interests are completed, anticipated to occur by the
first quarter of 2025. Eastdil Secured acted as an advisor to
Vornado’s street retail joint venture in this transaction.
Vornado Realty Trust is a fully-integrated
equity real estate investment trust.
CONTACT
Thomas J. Sanelli(212) 894-7000
Certain statements contained herein may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are not guarantees of performance. They represent our
intentions, plans, expectations and beliefs and are subject to
numerous assumptions, risks and uncertainties. Our future results,
financial condition and business may differ materially from those
expressed in these forward-looking statements. You can find many of
these statements by looking for words such as "approximates,"
"believes," "expects," "anticipates," "estimates," "intends,"
"plans," "would," "may" or other similar expressions in this press
release. For a discussion of factors that could materially affect
the outcome of our forward-looking statements and our future
results and financial condition, see “Risk Factors” in Part I, Item
1A, of our Annual Report on Form 10-K for the year ended December
31, 2023. Currently, some of the factors are the increased interest
rates and inflation on our business, financial condition, results
of operations, cash flows, operating performance and the effect
that these factors have had and may continue to have on our
tenants, the global, national, regional and local economies and
financial markets and the real estate market in general.
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