NEW YORK CITY—Vornado Realty Trust has agreed to sell its leasehold interest in 20 Broad St., a 473,000-square-foot office building in Manhattan. The identity of the buyer was unclear at press time. The REIT did not respond to GlobeSt.com's request for comment.
The aggregate consideration for the sale of the leasehold and the early termination of the NYSE lease is $200 million or $423 per square foot. The total income from this transaction is approximately $156 million comprised of $141 million from the gain on sale and $15 million of lease termination income. The sale is expected to be completed in the fourth quarter of 2015.
Vornado ground leases this property—which is contiguous to the New York Stock Exchange—from the NYSE, who is also the major tenant in the building.By agreement, Vornado has early terminated the NYSE space lease which was scheduled to expire in June 2016.
The buyer intends to convert the office building to a residential property.
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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.
