Reuben Brothers Buying Vornado’s Madison Avenue Retail Properties: Sources
Vornado previously announced the $185 million sale of the three Madison Avenue buildings along with two SoHo properties: the cast-iron loft building 478 Broadway between Broome and Grand streets and the retail portion of 155 Spring Street, a commercial condo building between West Broadway and Wooster Street, CO reported. But it did not disclose the buyers. It’s unclear who bought the SoHo assets.
Reuben Brothers will purchase the portfolio of Madison Avenue buildings after losing out on the acquisition of 530 Fifth Avenue, the source said. A joint venture between Aurora Capital Associates and hedge funder Edmond M. Safra instead snagged the 60,000-square-foot Fifth Avenue retail building for $192 million, representing a $100 million loss on the retail condo for owner Brookfield Property Partners, CO reported.
Vornado is also expected to lose about $7 million on the sales of 677, 759 and 828 Madison Avenue and the two other SoHo properties.
Reuben Brothers went up against the private wealth management company for the family behind Modelo beer, an unnamed pension fund, and other South American wealth management companies to snag the Madison Avenue properties, the source said.
The sale of the buildings, all located in the East 60s, are expected to close in the third quarter of this year, CO previously reported. The buildings’ retail spaces are only 30 percent leased and they have negative income, Vornado previously said.
Representatives for Vornado and Reuben Brothers did not immediately respond to requests for comment.
Celia Young can be reached at email@example.com.