Vornado to Buy 623 Fifth Avenue for $218M

Vornado Realty Trust just added another asset to its portfolio. 

The real estate investment trust (REIT) is acquiring the 36-story, 382,500-square-foot office building at 623 Fifth Avenue for $218 million, the firm announced. The seller is Cohen Brothers Realty, while Cooper Horowitz‘s Robert Horowitz negotiated the sale of the property.

The 75 percent vacant office condominium is situated above the famed Saks Fifth Avenue flagship department store. Vornado intends to reposition and redevelop 623 Fifth Avenue into a Class A boutique office building.

 Vornado declined to comment on the acquisition, while Cohen Brothers did not immediately respond to a request for comment. Vornado is expecting to close the acquisition in September, according to a press statement, and complete the redevelopment in 2027. 

Once completed, the firm expects the redeveloped office project to complement its nearby properties in the Plaza District and along Park Avenue. These include 280 Park Avenue, 350 Park Avenue, 595 Madison Avenue, 640 Fifth Avenue, 689 Fifth Avenue and 1290 Avenue of the Americas.

In May 2024, Cohen Brothers filed an application to convert the Midtown building into a residential property, Crain’s New York Business reported at the time. The firm was approached with a preemptive offer based on that conversion, sources said, but decided to market the property as-is instead, attracting a wider but select group of qualified bidders. Ultimately, Vornado came out on top. 

Cohen Brothers has been struggling with retaining tenants across its properties, including 623 Fifth Avenue. The firm has also been dealing with financial turmoil for a few years as several of its properties have gone into foreclosure, Commercial Observer previously reported. 

Cathy Cunningham contributed reporting to this article. 

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.