NEW YORK CITY—Vornado Realty Trust has acquired 260 11th Ave.—a 235,000 square feet office property leased to the City of New York through 2021—a 10,000 square foot parking lot and additional air rights. The 44,000 square foot site is located on Eleventh Avenue from 26th to 27th Streets, directly across from the Starrett Lehigh building.
The transaction is structured as a 99-year ground lease with an option to purchase the land for $110 million. The $3.9 million annual ground rent and the purchase option price escalate annually at the lesser of 1.5% or CPI. The buildings were purchased for 813,900 newly issued Vornado operating partnership units valued at approximately $80 million.
The company intends to redevelop and expand the property to serve the supply constrained West Chelsea office market. Information on brokers who represented the parties to the transaction was not available at press time. Vornado declined to comment to GlobeSt.com.
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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.
