Vornado Takes Giant Step into DC Market with Charles E. Smith Buy

WASHINGTON, DC-Already a big name in commercial property in the Big Apple, Vornado Realty Trust will increase its presence in the nation’s capital with the $1.6 billion purchase of Arlington, Virginia-based Charles E. Smith Commercial Realty, the largest owner and manager of commercial property in the Mid-Atlantic region.

Vornado, which currently owns 34% of Smith Commercial, will acquire the remaining 66% of the company for $599 million in stock and $985 million in debt. In return, Vornado will take over ownership and management of Smith Commercial’s 12.4 million sf of office space in the District, as well as the management of 5.8 million sf of office and other commercial space in the Washington, DC region.

The transaction is expected to close in the first quarter of 2002, at which point the company will increase the size of its board of trustees from seven members to nine. Officially, Smith Commercial will become Charles E. Smith Commercial Realty, a division of Vornado Realty Trust.