As GlobeSt.com previously reported, Vornado is buying the shares of a group of foreign companies that own the 1% sole general partnership interest as well as 69% in limited partnership interest. They are held through American entities: Apollo Real Estate for the New York building and Hudson Waterfront Associates for San Francisco.
The purchase price consists of $1.01 billion in cash and $797 million in existing debt. Vornado executives estimate a price of $775 per sf for 1290 Ave. of the Americas and $575 per sf for 555 California St. At those rates the New York building is valued at $1.55 billion and the San Francisco building at $1.035 billion. Vornado's 70% share is $1.085 billion for the New York building, and $724.5 million for the San Francisco building.
The remaining 30% limited partnership interest continues to be in Donald Trump's hands. Vornado has agreed to indemnify the sellers for liabilities and expenses relating to Trump's claims from an unrelated lawsuit Trump initiated in 2005.
Major tenants in 1290 Ave. of the Americas include AXA, Morrison & Foerster, Brvan Cave and Microsoft. Major tenants in the Bank of America Center include Bank of America, UBS and Goldman Sachs.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 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.
