Vornado Realty Trust said Tuesday it has agreed to purchase a 49% interest in Park Avenue Plaza from Closer Properties at a gross asset valuation of $1.1 billion, a significant discount to replacement cost. Co-owned by Fisher Brothers, Park Avenue Plaza is a 45-story, 1.2-million-square-foot office building located at 55 E. 52nd St., directly across 52nd Street from Vornado’s 350 Park Ave. development.
Park Avenue Plaza is 99% occupied by blue-chip tenants. Vornado will acquire its interest subject to its share of the $575-million loan encumbering the property that bears interest at a fixed rate of 2.99% and matures in November 2031.
Fisher Brothers will retain its current 51% ownership interest and will continue to manage and lease the property. Vornado and Fisher Brothers will have joint control over major decisions, Vornado said Tuesday.
The REIT said Park Avenue Plaza will complement its nearby Plaza District holdings of 280 Park Ave., 595 Madison Ave., 623 Fifth Ave., 640 Fifth Ave., 689 Fifth Ave., 3 E. 54th Street and 1290 Ave. of the Americas, in addition to 350 Park Ave.
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