Vornado Completes $1.1B Acquisition of 49% Stake in Park Avenue Plaza
VNO•Vornado Realty Trust has completed its acquisition of a 49% stake in Park Avenue Plaza for $1.1 billion. The 1.2 million-square-foot office tower is 99% leased to blue-chip tenants on an 11-year average lease, with Vornado assuming its share of a $575 million loan at 2.99% fixed rate.
1. Acquisition Terms
Vornado Realty Trust finalized its purchase of a 49% interest in Park Avenue Plaza at a gross valuation of $1.1 billion, securing a significant discount to replacement cost for the trophy office asset.
2. Property Profile
The 45-story, 1.2 million rentable-square-foot tower at 55 East 52nd Street is 99% occupied by blue-chip tenants under an 11-year weighted-average lease, offering stable cash flows and premium Park Avenue views.
3. Financing Structure
Vornado assumed its pro rata share of the existing $575 million mortgage on the building, which carries a fixed interest rate of 2.99% and matures in November 2031.
4. Strategic Benefits
The acquisition enhances Vornado’s Plaza District portfolio adjacent to its 350 Park Avenue development, strengthens its exposure to Class A office markets and leverages joint decision-making with Fisher Brothers.
