Vornado to Sell 866 United Nations Plaza
Gus Delaporte Nov. 8, 2013, 4:15 p.m.
Vorando Realty Trust has agreed to sell 866 United Nations Plaza for $200 million, the real estate investment trust announced earlier today. The Commercial Observer has learned the buyers of the 360,000-square-foot building are Meadow Partners and United Realty Partners.
The REIT will net proceeds of approximately $146 million after repaying existing debt and closing costs, according to a statement. Vornado did not disclose the identity of the buyer when announcing the sale.
The tax gain on the sale will be approximately $166 million and will be deferred in a like-kind exchange as part of Vornado’s acquisition of 655 Fifth Avenue, the REIT said.
Located in close proximity to the United Nations, the tenant roster at 866 UN Plaza includes the Consulates of Chile and Finland, as well as the Missions of Finland, Japan and Kenya.
Darcy Stacom and Bill Shanahan of CBRE brokered the sale of the building.