Vornado Joint Venture Sells Portion of 666 Fifth Avenue to Uniqlo for $350M
By Andrew Coen August 5, 2024 6:28 pm
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A Vornado Realty Trust (VNO) retail joint venture has agreed to sell a portion of Uniqlo’s U.S. flagship store at 666 Fifth Avenue in Midtown Manhattan to the Japanese clothing company for $350 million.
The real estate investment trust (REIT) announced the deal Monday in advance of its second quarter earnings results.
The JV, in which Vornado owns a 52 percent stake, held a fee condominium interest in 17,295 square feet — 6,477 square feet at grade level — of Uniqlo’s 90,732-square-foot store at the property. Estimated net proceeds of $340 million from the deal are expected to be partially used for returning Vornado’s $390 million of preferred equity on the property, according to the announcement.
As part of the transaction, the pass-through leases between the office condominium owner and the retail JV will be terminated, Vornado said. The Vornado retail JV will continue to own 23,832 square feet of retail space (7,416 square feet at grade) at 666 Fifth featuring Abercrombie & Fitch and Tissot stores, the REIT said in its announcement.
Eastdil Secured’s Gary Phillips and Will Silverman arranged the sale, according to sources familiar with the transaction.
Vornado, UNIQLO and Eastdil did not immediately return requests for comment.
Vornado’s second quarter earnings call is scheduled for Tuesday morning.
Andrew Coen can be reached at acoen@commercialobserver.com
