In a statement released yesterday, Eisenberg said simply that, "in view of the lack of a final agreement at this time, the Port Authority's board of commissioners has instructed staff and our advisors to engage in exclusive negotiations with Silverstein Properties and Westfield America to conclude a 99-year net lease transaction."
While Eisenberg took a high-road approach in the statement, insiders told GlobeSt.com long before talks broke down that Vornado was a "difficult" negotiator and mentioned that the "fit" between Vornado and the Port Authority simply was not there.
The breakdown, the source says, does not revolve around money, since all of the bidders were clustered tightly around Vornado's $3.25-billion offer.
The Port Authority put out requests for bids early last spring for a company to lease, manage and operate the complex for a 99-year term in what turned out to be a speedy and heated process. The complete package bidders scrambled to claim includes the Commodities and Exchange Center and Five World Trade Center. Eight initial bidders entered the fray to take the property, a group that was narrowed down to four finalists this past December, Vornado, Boston Properties, Brookfield Properties and Silverstein Properties.
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
