(For more retail coverage, click GlobeSt.com/RETAIL.)
HICKSVILLE, NY-Vornado Realty Trust shelled out $153 million for the 1.2-million-sf Broadway Mall here. The REIT also entered into an option agreement for the 1.4-million-sf Springfield Mall in Springfield, VA, which it plans to redevelop, reposition and retenant.
Broadway Mall is anchored by Ikea, Target, Macy's and a Multiplex Cinema. The agreement for the Long Island-area mall includes $95.8 million of existing debt. This purchase is expected to close in the fourth quarter of 2005.
Springfield Mall is anchored by Macy's, JC Penney and Target. Vornado's option becomes exercisable upon the passing of one of the existing principals of the selling entity and may be deferred at the company's election through November 2012. The REIT paid $36 million for the option and upon exercise of the option will pay $80 million and acquire the mall. The deal is subject to the existing mortgage which is presently $181 million and will be amortized to $149 million in 2013 when it matures. During the option period Vornado will manage the sitel and receive the malls' net cash flow. Vornado also has a 2.5% partner in this transaction. The acquisition of the option is expected to close by the end of the year.
These acquisitions add to the Paramus, NJ-based REIT's portfolio. Alexander's Inc., a REIT managed and one-third-owned by Vornado, has gotten government approval to build Rego Park II, a mixed-use project in Queens with 600,000 sf of retail and 450 apartment units. A team of the Related Cos. and Vornado Realty Trust were selected for the Moynihan Station project. The $818-million effort 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.
Vornado also acquired a residential/retail complex at East 66th Street and Madison Avenue for $158 million. And the REIT 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.
In June, the firm entered into an agreement to purchase the 552,500-sf Boston Design Center for approximately $96 million--its first holding in the city and is its largest acquisition in New England. Vornado also acquired a 50% interest in the 322,000-sf Beverly Connection shopping center in Beverly Hills.
In June, another Long Island mall changed hands. The Westfield Group inked a deal for the 1.3-million-sf Sunrise Mall here a private partnership called Sunrise Mall Associates in a $143-million deal.
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