Vornado Realty Trust
), a leading real estate investment trust (REIT), has recently
completed the acquisition of 666 Fifth Avenue at 53rd Street -
one of the prized retail assets in Manhattan, for $707 million.
With the deal, the company has increased its street retail
portfolio in the region to 2.3 million square feet.
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The acquired property is strategically placed at the heart of
Midtown Manhattan in one of the most recognized corridors in the
world. The building is encircled by the full spectrum of shopping
and entertainment hotspots in the region, offering a plethora of
attractions to its tenants. Besides its signature embossed
facade, the building also boasts of a well-designed lobby that
provides a unique feel of serenity amid the din and bustle of the
The acquisition further reinforces Vornado Realty's strong
foothold in the region. The Manhattan portfolio of the company
comprises of approximately 28 million square feet across 50
properties. These include Class A office buildings, street retail
properties, residential assets, and the Hotel Pennsylvania.
Vornado Realty also owns half of the office building above 666
Fifth Avenue at 53rd Street.
New York-based Vornado Realty acquires, owns and leases office
properties, retail space and temperature-controlled logistics and
refrigerated warehouses. Besides its properties, the company also
has investments in other REITs, industrial buildings, retail
assets, and Toys 'R' Us.
Vornado Realty has a strong asset portfolio in two of the best
long-term office markets in the U.S. - New York city and
Washington DC. This provides the company with a competitive
advantage to continually increase rents. The company also has a
healthy balance sheet and adequate liquidity.
We maintain our long-term Neutral rating on Vornado Realty, which
currently has a Zacks #2 Rank that translates into a short-term
Buy recommendation. We also have a Neutral recommendation and a
Zacks #3 Rank (short-term Hold recommendation) for
Boston Properties Inc.
), a competitor of Vornado Realty.