Vornado Closes On Two UWS Buildings In $100 Million Deal
Daniel Geiger July 27, 2012, 10:45 a.m.
Vornado has closed on its acquisition of a 50 percent stake in two Upper West Side residential buildings 50 and 70 West 93rd Street in a deal that valued the properties at a little over $100 million.
Vornado is buying the interest from AREA Property Partners, a Manhattan based real estate investment company with interests in several residential and commercial investments both in the city and globally.
Stellar Management, which was AREA’s partner in the two buildings, will retain its ownership in the properties, now in a joint venture with Vornado.
The deal is another step by Vornado, one of the city’s largest commercial office landlords, into the residential side of the real estate business. The company also owns 220 Central Park South, a rental building it is planning to redevelop into a luxury condo tower with stunning park views, and other residential assets. In recent months, Steve Roth, Vornado’s chief executive, said the company’s management team would evaluate new business strategies in order to boost its performance.
Vornado was also drawn to the potential to develop retail in the buildings, particularly 70 West 93rd Street, which is on the corner of Columbus Avenue, an important retail corridor on the Upper West Side, and has almost 15,000 square feet of retail space that can be redeveloped. Vornado is one of the biggest and most successful retail landlords in the city.
The sale was arranged by Doug Harmon and Adam Spies, top sales executives at Eastdil Secured. Neither could be reached by press time. Calls to Vornado were also not returned by deadline.