On the Market

Vornado Asking $650 M. for 1 Park Ave.

Vornado Realty Trust is reportedly planning to sell 1 Park Avenue and is seeking roughly $650 million for the office tower.

1 park avenue Vornado Asking $650 M. for 1 Park Ave.

1 Park Avenue

The real estate investment trust, which has interests in more than 20 million square feet of Manhattan office space, has hired Douglas Harmon and Adam Spies of Eastdil Secured to market the 20-story, 925,000-square-foot tower, according to Bloomberg News.  

Murray Hill Properties and a unit of Cerberus Capital Management, which spent about $15 million renovating the building, including upgrading the lobby and elevators, sold a 95 percent interest in the property to Vornado in a 2011 deal valued at about $427 million.

The 1920s-era building, located between East 32nd and 33rd streets, had about $250 million of securitized debt that was under the threat of “imminent default” early in 2011, which was retired with the sale to Vornado, according to the report.

After the 2011 sale New York University’s Langone Medical Center extended its lease to 2041 and expanded to 420,000 square feet, which comprises about half the building.

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