Vornado Sells Manhattan Retail Assets for $124M

510 Fifth Ave. Image courtesy of CommercialEdge

Vornado Realty Trust has entered into an agreement to sell four downtown Manhattan retail buildings, encompassing 123,000 square feet of space. The company also sold a fifth retail asset as part of a second deal. The combined sales price for the two transactions is $124.4 million.

The sale of the four buildings is expected to close later this quarter. Combined, these deals are expected to generate an approximately $20 million net gain.

The properties included in the latest disposition are:

• a 65,000-square-foot Class B retail property at 510 Fifth Ave., situated within the Plaza District submarket
• a 7,000-square-foot property at 148 Spring St. that includes office and retail space
• a 16,000-square-foot asset at 443 Broadway, currently occupied by art supplier Blick Art Materials
• a 35,000-square-foot, 13-story retail building at 692 Broadway

The asset that sold earlier this month was the iconic art gallery Armory Show, acquired by Frieze Art Fair, according to the New York Times.

The portfolio’s tenant roster includes SirionLabs, The North Face, The Drawing Room and Dr. Martens among others, CommercialEdge data shows.

Despite the current economic climate, retail remained a top-performing asset class in the Greater New York region this year. Earlier this month, Stockbridge Capital Group, in partnership with Cypress Equities, sold a 186,000-square-foot Walmart Supercenter in Linden, N.J. Heritage Properties Inc. picked up the asset through a 1031 exchange for $55 million.

In May, an affiliate of Northeast Capital Group purchased West Falls Plaza, a 90,945-square-foot retail center in Woodland Park, N.J. SITE Centers sold the asset for $18 million.