NEW YORK CITY — Vornado Realty Trust (NYSE: VNO) has agreed to sell 1740 Broadway, a 601,000-square-foot office building in Manhattan. The price is $605 million, or just over $1,000 per square foot.
The financial statement gain will be approximately $443 million, while the tax gain will be $483 million, deferred as part of a like-kind exchange for the acquisition of the St. Regis Fifth Avenue retail.
The sale of 1740 Broadway is subject to closing conditions and is expected to be completed by the end of the year.
The company has also completed the purchase of the retail condominium of the St. Regis Hotel and the adjacent retail town house for $700 million. Vornado owns approximately 75 percent of the joint venture which owns the property.
Vornado also owns 689 Fifth Ave. on the same block. In total, the company owns 19.8 million square feet of Manhattan office space in 31 properties, four Manhattan residential properties totaling 1,655 units and 2.4 million square feet of Manhattan street retail space.
Vornado is a real estate investment trust (REIT) with a portfolio of more than 100 million square feet, primarily located in the New York and Washington, D.C. areas. Vornado’s stock price closed at $111.07 per share on Wednesday, Nov. 5, up from $90.53 per share a year ago.
— Haisten Willis