NEW YORK CITY—GlobeSt.com has confirmed that Vornado Realty Trust has closed its $142 million acquisition of the Center Building, an eight-story, 437,000-square-foot office building in Long Island City.
As initially reported in the Commercial Observer, the sellers of the building, at 33-00 Northern Blvd., were Madison Marquette and Perella Weinberg, according to David Robinov, the managing director of sales at Ackman-Ziff Group, who represented the sellers along with Marc Warren, a managing director at the brokerage. The duo sourced the buyer as well.
“Following the sale of a nearby building at over $300 per square foot, the ownership wisely took advantage of the increased demand for LIC buildings and engaged Ackman Ziff to recapitalize the Center Building, just two years after acquiring the asset,” Robinov tells GlobeSt.com.
“There has been significant appreciation in Long Island City in the past few years,” he explains. “The sellers were looking to capture and monetize the increase in the asset's value. We found very deep investor interest in this property, supporting the buyer's expectation that there will be growing demand from TAMI tenants for large floor plate buildings, and continued rental rate growth.”
The 1915 building is 98% leased, according to the building's marketing materials. Major tenants in the building include the Human Resources Administration, with 149,400 square feet, the New York City Transit Authority, which occupies 109,625 feet and New York Foundling Hospital, which leases 35,000 square feet.
The $142 million price includes the assumption of an existing $62 million mortgage maturing in October 2018, according to information Vornado issued about the contract in November. The company declined to comment.
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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.
