Vornado to Buy 49% of Park Avenue Plaza for $1.1B, Assumes $575M Loan
Vornado will acquire a 49% interest in Park Avenue Plaza for $1.1 billion, valuing the 1.2 million-sq-ft trophy office at $950 per square foot and assuming its share of a $575 million loan at 2.99% due November 2031. The 45-story, 99%-leased asset has below-market rents and is managed by Fisher Brothers.
1. Transaction Terms
Vornado will purchase a 49% interest in Park Avenue Plaza from Closer Properties for $1.1 billion, valuing the 1.2 million-square-foot office at $950 per square foot. The deal includes Vornado’s share of a $575 million fixed-rate loan at 2.99% maturing in November 2031 and is expected to close in Q2 2026.
2. Asset Profile
Park Avenue Plaza is a 45-story, Class A trophy office property at 55 East 52nd Street in Midtown Manhattan. The building is 99% leased to blue-chip tenants on an 11-year weighted-average lease term with below-market rents and features protected Park Avenue views.
3. Strategic Rationale
Fisher Brothers will retain its 51% stake and continue property management and leasing, sharing joint control with Vornado on major decisions. The acquisition bolsters Vornado’s Plaza District holdings, complementing assets like 350 Park Avenue and 595 Madison Avenue.