Vornado to Buy Minority Stake in Manhattan High-Rise
The REIT and the asset’s co-owner will make major decisions jointly.
Vornado Realty Trust has entered into an agreement to buy a 49 percent interest in Park Avenue Plaza in Manhattan from Closer Properties. The 1.2 million-square-foot office tower was valued at $1.1 billion or $950 per square foot and the transaction is expected to close at the end of the second quarter.
Vornado will also take on its share of the $575 million debt on the property—which bears a fixed-rate interest of 2.99 percent and is scheduled to mature in November 2031. Morgan Stanley Bank and New York Life Insurance Co. issued the note in 2022, according to Yardi Matrix information.
Majority-stake owner Fisher Brothers will continue to manage and lease the asset. Together with Vornado, the company will have joint control over major decisions.
In the first two months of 2026, Manhattan registered $1.6 billion in office investment sales, with assets changing hands at an average price of $740 per square foot, according to a Yardi Matrix report. The total volume was the highest across the U.S. during that timeframe and more than double compared to the Bay Area ($680 million), which ranked second on that same list. As for the price per square foot, the borough was second only to San Francisco, where properties traded at an average of $1,088.
Zooming in on Park Avenue Plaza
Park Avenue Plaza rises 45 stories at 55 E. 52nd St. Completed in 1981, the tower features 45,000-square-foot floorplates and 25 passenger elevators. After a decade of being LEED Silver-certified, the tower received a LEED Platinum accreditation in 2023.
Located in Midtown East, Park Avenue Plaza is a few blocks away from St. Patrick’s Cathedral and Rockefeller Center. The tower is also close to Vornado’s office assets, such as 280 Park Ave., 350 Park Ave., 595 Madison Ave., 640 Fifth Ave., 689 Fifth Ave., 3 E. 54th St., 1290 Avenue of the Americas and the 623 Fifth Ave. acquired last year.
READ ALSO: Office Real Estate Trends in 2026
The building’s tenant roster includes Jennison Associates, Morgan Stanley, General Atlantic, Evercore and BBR Partners, among others. The high-rise is currently 99 percent leased, with a weighted average lease term of 11 years.
The office vacancy rates continued to decline not just in Manhattan—where the average figure clocked in at 13.1 percent in February—but nationwide, supported by improving occupier demand. With the national vacancy rate holding at around 17 percent during the first quarter of 2026, this decline proves to be the way toward stabilization.
You must be logged in to post a comment.