Vornado JV to Sell Manhattan Building for $205M

A joint venture between Vornado Realty Trust and The Albanese Organization has entered into an agreement to sell 512 W. 22nd St., a Manhattan office building, for $205 million. The deal is expected to close next quarter.

The companies will use a portion of the proceeds to repay the $123.6 million mortgage loan encumbering the property. Vornado owns 55 percent of the asset.

The 173,000-square-foot property is in the Chelsea neighborhood, 1 mile from the Flatiron Building and the Empire State Building.

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Completed in 1920, the 11-story building was converted from industrial into office space in 2018, following designs by CookFox Architects. The venture funded the redevelopment with a $55.3 million construction loan from PNC Bank, according to CommercialEdge information.

The LEED Silver-certified property has floorplates ranging from 9,900 to 22,900 square feet, as well as 9,900 square feet of first-floor retail space. Amenities include a rooftop terrace, five passenger elevators and a garden.

Manhattan office sales volume ranks first nationally

Manhattan’s office investment volume for the first quarter clocked in at more than $2 billion, dominating the national ranking, according to a CommercialEdge office report. Assets in the metro traded at an average of $439 per square foot, the second-highest rate nationally. Additionally, the borough’s vacancy rate at the end of March was 16.5 percent, down a promising 100 basis points year-over-year.

In another headline-worthy Manhattan move, last week Tishman Speyer announced plans to acquire 148 Lafayette St., a 150,000-square-foot office building in the SoHo neighborhood, for about $108 million. The deal is expected to close this month.