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Vornado Emerges as Likely Frontrunner in Rockefeller Center Bidding

NEW YORK CITY-Insiders and experts indicate Boston Properties, which as recently as two weeks ago was listed in published reports as the only bidder left standing, is no longer in hot pursuit.

By Amy Vaughn | Updated on December 15, 2000

NEW YORK CITY-As of the beginning of this month, published reports were pointing to Boston Properties as the last bidder left standing in Goldman Sachs’ pursuit of $2.5 billion for Rockefeller Center. While reports indicated Boston Properties’ bid came in under Goldman’s goal, they were rumored to have outbid the other top contenders for the landmark property. Now, insiders and industry experts are indicating Vornado Realty has pulled ahead in the race and looks like a strong frontrunner.

Jonathan Litt, senior real estate analyst and director of real estate research for Salomon Smith Barney, renewed the flurry of speculation about the bidding process during his presentation yesterday at the New York Chapter of the Real Estate Lenders Association breakfast. Litt suggested during an interactive question and answer period that Boston Properties was no longer hotly pursuing the property and Vornado Realty has become the likely frontrunner.

Following Litt’s comments, GlobeSt.com spoke with an inside source who confirms that Boston Properties is no longer in the running. “With the shift in lending rates, what we’re seeing is that different players with more depth of resources [equity versus debt structures] are making their moves,” he told GlobeSt.com. “Increasingly, this is going to become a market where equity overshadows debt. Of course, the cost of that equity is higher. So, in order to gain something, these players have to sacrifice more.”

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