{"id":1004033945,"date":"2011-11-07T07:45:29","date_gmt":"2011-11-07T15:45:29","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004033945"},"modified":"2022-12-08T05:58:35","modified_gmt":"2022-12-08T13:58:35","slug":"vornado-sells-228m-chicago-office-asset-four-manhattan-properties","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/vornado-sells-228m-chicago-office-asset-four-manhattan-properties\/","title":{"rendered":"Vornado Makes Sales to “Focus on Core”"},"content":{"rendered":"

November 4, 2011<\/strong>
\nBy Barbra Murray, Contributing Editor<\/em>
\n\"\"<\/a><\/p>\n

Following through on strategic plans for its portfolio, Vornado Realty Trust revealed that it has entered into a $228 million deal to sell the 1.2 million-square-foot 350 West Mart Center office building in Chicago and signed a separate agreement to fork over ownership of four mixed-use retail assets in Manhattan for $78 million.<\/p>\n

“They’ve articulated to the investment community that they were going to simplify their business a bit and focus on their core office and retail, on owning properties in Manhattan and D.C., and one of the businesses that they specified that they were going to de-emphasize was the merchandise mart business,” Sheila McGrath, senior vice president of equity REIT research with global investment bank Keefe, Bruyette & Woods, told Commercial Property Executive<\/em>.<\/p>\n

Vornado had owned the 34-year-old former apparel mart building since 1998, when it acquired a $630 million portfolio that included Chicago’s famed Merchandise Mart from the iconic Kennedy Family. Located along the Chicago River, the 25-story, LEED-certified tower is home to the likes of the Chicago Sun-Times, Comcast SportsNet, the Illinois Institute of Art-Chicago and Ogilvy Public Relations.<\/p>\n

Details about the four Manhattan mixed-use retail properties Vornado has agreed to sell are not currently being disclosed; however, the disposition of the assets, despite their location in a coveted market, dovetails with the REIT’s current strategy. “I just spoke to them this morning and they did say that these were non-core properties and that they have a lot more opportunity in their retail portfolio, in their street retail,” McGrath said. “So they’re not de-emphasizing street retail in New York, these were just non-core.”<\/p>\n

All of the assets turned heads in the investment community when they came up for grabs. “I understand there were a number of bids at the level that they sold. And at a little bit lower level, there were even more bids. So there was a decent amount of interest.”<\/p>\n

Vornado expects to receive net cash proceeds totaling approximately $290 million on the Chicago and Manhattan transactions, for a net gain of roughly $55 million. “I think the sales were a good move for them in terms of increasing liquidity, which they have a lot of at this point, and de-emphasizing their merchandise mart business,” McGrath said.<\/p>\n

The transactions are on track to close by the first quarter 2012.<\/p>\n","protected":false},"excerpt":{"rendered":"

Vornado has entered into a $228 million deal to sell the 1.2 million-square-foot 350 West Mart Center office building in Chicago and signed a separate agreement to fork over ownership of four mixed-use retail assets in Manhattan for $78 million.<\/p>\n","protected":false},"author":1201,"featured_media":1004033946,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21781,21808,13,21752,21742,10,21747,21749],"tags":[],"class_list":["post-1004033945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-real-estate","category-featured","category-midwest","category-mixed-use","category-latest","category-northeast","category-office","category-retail"],"acf":[],"yoast_head":"\nVornado Makes Sales to "Focus on Core" - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/vornado-sells-228m-chicago-office-asset-four-manhattan-properties\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vornado Makes Sales to "Focus on Core"\" \/>\n<meta property=\"og:description\" content=\"Vornado has entered into a $228 million deal to sell the 1.2 million-square-foot 350 West Mart Center office building in Chicago and signed a separate agreement to fork over ownership of four mixed-use retail assets in Manhattan for $78 million.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/vornado-sells-228m-chicago-office-asset-four-manhattan-properties\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2011-11-07T15:45:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-08T13:58:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/11\/110411-350-W-Mart-Center-Vornado.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"650\" \/>\n\t<meta property=\"og:image:height\" content=\"539\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nicholas Ziegler\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/vornado-sells-228m-chicago-office-asset-four-manhattan-properties\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/vornado-sells-228m-chicago-office-asset-four-manhattan-properties\/\",\"name\":\"Vornado Makes Sales to \\\"Focus on Core\\\" - 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