Search
 

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

WASHINGTON, DC-Vornado Realty Trust, one of New York City's most prominent REITs, will soon be able to stake its claim as the Washington, DC area's biggest commercial property owner. Vornado's $1.6 billion acquisition of Virginia's Charles E. Smith Commercial Realty will make the New York-based company the nation's fourth largest REIT.

By Barbra Murray | Updated on October 23, 2001

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.