Vornado JV to Sell 512 West 22nd Street for $205 Million
Vornado AG真人官方ty Trust (NYSE:VNO) has announced that its 55% owned joint venture has agreed to sell 512 West 22nd Street, a 173,000 square foot Class A office building, for $205 million. The transaction is expected to close in the third quarter of 2025. The joint venture plans to use a portion of the proceeds to repay the $123.6 million mortgage loan that currently encumbers the property. The sale is subject to customary closing conditions.
Vornado AG真人官方ty Trust (NYSE:VNO) ha annunciato che la joint venture di cui detiene il 55% ha concordato la vendita di 512 West 22nd Street, un edificio per uffici di Classe A di 173.000 piedi quadrati, per 205 milioni di dollari. La transazione dovrebbe concludersi nel terzo trimestre del 2025. La joint venture prevede di utilizzare una parte del ricavato per rimborsare il mutuo ipotecario di 123,6 milioni di dollari attualmente gravante sulla propriet脿. La vendita 猫 soggetta alle consuete condizioni di chiusura.
Vornado AG真人官方ty Trust (NYSE:VNO) ha anunciado que su empresa conjunta, de la cual posee el 55%, ha acordado vender 512 West 22nd Street, un edificio de oficinas Clase A de 173,000 pies cuadrados, por 205 millones de d贸lares. Se espera que la transacci贸n se cierre en el tercer trimestre de 2025. La empresa conjunta planea usar una parte de los ingresos para pagar el pr茅stamo hipotecario de 123.6 millones de d贸lares que actualmente grava la propiedad. La venta est谩 sujeta a las condiciones habituales de cierre.
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Vornado AG真人官方ty Trust (NYSE:VNO) a annonc茅 que sa coentreprise d茅tenue 脿 55 % a convenu de vendre 512 West 22nd Street, un immeuble de bureaux de classe A de 173 000 pieds carr茅s, pour 205 millions de dollars. La transaction devrait 锚tre finalis茅e au troisi猫me trimestre 2025. La coentreprise pr茅voit d'utiliser une partie des recettes pour rembourser le pr锚t hypoth茅caire de 123,6 millions de dollars qui gr猫ve actuellement la propri茅t茅. La vente est soumise aux conditions habituelles de cl么ture.
Vornado AG真人官方ty Trust (NYSE:VNO) hat bekannt gegeben, dass sein zu 55 % gehaltenes Joint Venture zugestimmt hat, 512 West 22nd Street, ein 173.000 Quadratfu脽 gro脽es B眉rogeb盲ude der Klasse A, f眉r 205 Millionen US-Dollar zu verkaufen. Die Transaktion soll im dritten Quartal 2025 abgeschlossen werden. Das Joint Venture plant, einen Teil der Erl枚se zur R眉ckzahlung des derzeit auf der Immobilie lastenden Hypothekendarlehens in H枚he von 123,6 Millionen US-Dollar zu verwenden. Der Verkauf unterliegt den 眉blichen Abschlussbedingungen.
- Sale price of $205 million for the office building provides significant liquidity
- Proceeds will help reduce debt by repaying $123.6 million mortgage loan
- Transaction allows Vornado to monetize its 55% stake in the property
- Divestment of a Class A office building reduces the company's premium property portfolio
- Sale may indicate challenges in the office real estate market
Insights
Vornado's $205M office building sale will strengthen its balance sheet while indicating current valuations for Class A NYC office assets.
Vornado's planned sale of 512 West 22nd Street represents a strategic move to monetize a 173,000 square foot Class A office asset in Manhattan's Chelsea district. The
The structure of this deal is noteworthy - as a
This transaction aligns with strategies being employed across the REIT sector to strengthen balance sheets by divesting select office assets while market liquidity exists. The Chelsea submarket location of this property likely contributed to its marketability despite broader office sector challenges. The transaction's expected closing in Q3 2025 suggests reasonable buyer confidence in the property's fundamentals and rent roll stability.
For Vornado, this disposition represents selective pruning of its portfolio while potentially creating liquidity for debt reduction or selective reinvestment. With interest rates and inflation specifically mentioned as risk factors, this transaction reduces Vornado's exposure to these macroeconomic headwinds while demonstrating its ability to execute transactions in a challenging capital markets environment.
NEW YORK, May 14, 2025 (GLOBE NEWSWIRE) -- Vornado AG真人官方ty Trust (NYSE:VNO) announced today that its
A portion of the proceeds will be used by the joint venture to repay the
Vornado AG真人官方ty Trust is a fully-integrated equity real estate investment trust.
CONTACT
Thomas J. Sanelli
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FAQ
What is the sale price of Vornado's 512 West 22nd Street property?
When will VNO complete the sale of 512 West 22nd Street?
How much mortgage debt will be repaid from the sale proceeds?
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How large is the 512 West 22nd Street building being sold by VNO?
