Vornado Sells Washington Properties
- Jul 19, 2012
Vornado Realty Trust (NYSE:VNO) announced on July 5 it will sell its office building located at 409 Third St., S.W., in Washington, D.C. The price is $200 million and will result in net proceeds of $186 million and a net gain of $120 million.
On the same day, Vornado also disclosed that it has agreed to sell the Washington Design Center, the Boston Design Center, the L.A. Mart and the Canadian Trade Shows. The company sold all these assets to help fund the purchase of retail space on New York’s Fifth Avenue, the world’s priciest shopping corridor. (For more on Vornado’s acquisition of the 41-story, 1.5 million-square-foot office building at 666 Fifth Aven., at a price tag of $707 million, click over to Vornado Buys, Sells–and Pulls Back Its Veil, an article by Commercial Property Executive’s Barbra Murray.)
Known as the Washington Office Center, the building at 409 Third St. is adjacent to the Washington Design Center, an historic brick warehouse constructed in the 1920s and expanded in the 1980s. It is also being sold to the same buyer, a buyer whose identity has not yet been disclosed. Vornado Realty Trust has owned both buildings since 1998, when it purchased a 5.3 million-square-foot commercial real estate portfolio from the Kennedy family for approximately $625 million.
The Washington office tower has nine floors and 420,000 square feet of space. Its amenities include a cafe, fitness center, print shop and bank. All tenants and visitors can park their cars in a four-level garage with 425 spaces. The first level of the garage also includes bike racks. The General Services Administration is its anchor tenants. It signed a 254,000-square-foot lease for the Small Business Administration this January.
The sale of the 22-year-old Washington Office Center is subject to customary closing conditions. Vornado expects to close it in the third quarter of 2012.
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Image courtesy of http://www.vornadocharlesesmith.com.