(For more retail coverage, click GlobeSt.com/RETAIL.)
NEW YORK CITY-In another retail acquisition here, Vornado Realty Trust has acquired a 35,752-sf site at 692 Broadway for a price between $700 and $800 per sf. Tower Records will lease back the five contiguous retail condominium units for 10 years, with the option to extend for two additional five-year terms.
According to a spokesperson for NAI DG, which handled the deal, Tower's 692 Broadway location is one of the company's strongest performing stores. The spokesperson adds that the sale-leaseback arrangement gave Tower "the financial benefit of cash and balance while maintaining a strong presence."
The NAI DG Hart team of Stephen D. Dadourian, Peter G. Lindner and Sean K. Regan, working in conjunction with the NAI BT Commercial team of Jim Gray and Morgan Walsh represented the seller. Vornado was repped by the NAI DG Hart Corporate Services team of S. Craig Nardi, Gerry McHugh and Joseph J. Pollaci.
Earlier this year, Vornado, based in Paramus, NJ, acquired a residential/retail complex at East 66th Street and Madison Avenue for $158 million. The 9,100 sf of retail space is fully occupied by Basso, Gaultier and Krizia. That was the REIT's second Madison Avenue purchase this year. The company spent $113 million for the 17,000-sf retail condominium portion of the former Westbury Hotel which occupies the blockfront at Madison Avenue between 69th and 70th streets.
And last month, the Vornado-managed REIT Alexander's receives government approval to move forward with the Century 21-anchored Rego Park II here. The mixed-use project will have 600,000 sf of retail and 450 apartment units. And Vornado will team with the Related Cos. to redevelop the Farley Post Office. Dubbed the Moynihan Station, the $818-million project involves 300,000 sf of space for the train station, 850,000 sf for commercial space--including as much as 100,000 sf of retail--and up to one million sf of air rights for residential housing across the street. And in one of the year's largest deals, Vornado and two partners were the winning bidders for the Toys 'R' Us and Babies 'R' Us chains. They shelled out $6.6 billion for the stores.
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