LOS ANGELES — Vornado Realty Trust (NYSE: VNO) has completed the previously announced sale of Beverly Connection, a power shopping center in Los Angeles, for $260 million. The property’s tenants include Old Navy, Nordstrom Rack, Men’s Wearhouse and Marshalls.
The 335,000-square-foot center is located at La Cienega and Beverly boulevards across the street from the Beverly Center, an upscale shopping mall with 160 retailers and dining options.
The sales price is comprised of $239 million in cash and $21 million in 10-year seller financing. The sale resulted in a net gain of approximately $44 million for Vornado, which will be recognized in the third quarter.
Vornado did not disclose the buyer, but the Los Angeles Times reported that the buyer is Ashkenazy Acquisition Corp., a New York-based private real estate investment firm. Michael Alpert, president of Ashkenazy Acquisition Corp., revealed that the company plans to invest an additional $500 million in the greater Los Angeles area in the near term. The company owns more than 100 retail, office and residential properties in the United States and Canada valued at $5 billion.
Vornado Realty Trust is a fully integrated equity real estate investment trust (REIT) based in Paramus, New Jersey. Vornado’s U.S. portfolio spans 100 million square feet, with the majority of properties located in New York and Washington, D.C.
Vornado’s stock price closed Wednesday at $106.37 per share, up from $85.47 per share this time last year.
— John Nelson