LOS ANGELES — Vornado Realty Trust (NYSE: VNO) has agreed to sell Beverly Connection, a 335,000-square-foot power shopping center in Los Angeles, for $260 million. Michael Alpert, president of Ashkenazy Acquisition Corp., has confirmed that Ashkenazy is the buyer, according to the Los Angeles Times.
The property, located at the intersection of La Cinega and Beverly boulevards in the Beverly Grove neighborhood, houses tenants including Target, Old Navy, Ross Dress for Less, T.J. Maxx and Marshalls. The deal is expected to close in the third quarter of this year.
“We like to acquire trophy properties in major markets around the U.S.,” Alpert told the Times. “We expect to invest up to an additional $500 million in the Greater Los Angeles market. We have a very strong appetite for more local properties.”
Ashkenazy, a private investment firm based in New York City, will acquire the property unencumbered of existing debt. Vornado, a Paramus, N.J.-based REIT, expects the sale to generate $40 million in net gain.
Beverly Connection offers restaurants such as Baja Fresh Mexican Grill and Johnny Rockets, as well as smaller stores including Verizon Wireless and CVS/pharmacy, in addition to the aforementioned large retailers. The open-air center consists of several two-story structures.
Vornado Realty Trust’s portfolio totals more than 100 million square feet of office, multifamily, hospitality and retail properties nationwide. The retail portion of the portfolio consists of more than 20 million square feet in 106 shopping centers and six regional malls.
The company’s stock price closed at $97.55 per share yesterday, up from $83.28 per share a year ago.
Ashkenazy Acquisition Corp. owns a portfolio of more than 13 million square feet that is valued at approximately $5 billion, according to the firm’s website.
— John McCurdy