Vornado Realty Trust
), a real estate investment trust (REIT), recently announced that
its 25% owned real estate fund, Vornado Capital Partners, L.P has
acquired a retail property, 1100 Lincoln Road, for $132 million.
The retail property, spanning 167,000 square feet, is currently 97%
leased and is one of the prime attractions of the Lincoln Road
shopping district in Miami Beach, Florida.
The transaction was financed partially by a $66 million new
mortgage loan on the property. The loan bears interest at LIBOR
plus 2.75% and is scheduled to mature in July 2015 with two
one-year extension options.
Additionally, Vornado Realty also entered into an agreement to
acquire a retail condominium located at 666 Fifth Avenue on 53rd
Street in New York City for approximately $707 million. The
property encompasses 114,000 square feet with a frontage of 126
feet on Fifth Avenue. The transaction will be funded with property
level debt and proceeds from asset sales and is expected to close
in the fourth quarter of 2012.
New York-based Vornado Realty is engaged in acquiring, owning
and leasing office properties, retail space, and
temperature-controlled logistics and refrigerated warehouses.
Vornado Realty is the largest publicly traded office REIT in the
New York region concentrating on Class A office properties. This
puts the company well ahead of many competitors who have assets in
less desirable markets, still struggling with high vacancies and
little pricing power.
Vornado Realty currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We are also maintaining
our long-term Neutral recommendation on the stock. One of its
Brookfield Properties Corporation
) also holds a Zacks #3 Rank.
BROOKFLD OFFICE (BPO): Free Stock Analysis
VORNADO RLTY TR (VNO): Free Stock Analysis
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