NEW YORK CITY—Vornado Realty Trust has agreed to sell 1740 Broadway, a 601,000 square foot office building between 55th and 56th streets. The property is being bought by the Blackstone Group, GlobeSt.com has learned in this UPDATE. The sale price of the asset, formerly the MONY building or Mutual of New York building, was approximately $605 million, or $1,000 per square foot. The financial statement gain will be approximately $443 million. The tax gain will be approximately $483 million, which will be deferred as part of a like-kind exchange for the previously reported acquisition of the St. Regis New York retail on 5th avenue.
The sale is slated for completion in the fourth quarter of 2014. The identity of the buyer was unclear at press time.
Meanwhile, the REIT has completed the purchase of the retail condominium of the St. Regis Hotel and the adjacent retail townhouse for $700 million. Vornado owns approximately 75% of the joint venture that holds the property.
The property has 100 feet of frontage on Fifth avenue on the southeast corner of 55th Street, in the heart of the area of Fifth Avenue favored by the world's luxury retailers. The seller of the condo was unidentified at press time. A Vornado representative did not return a call from GlobeSt.com seeking comment.
Vornado also owns 689 Fifth Ave. on the same block.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
