Vornado Realty Trust
) penned a deal to sell a 360,000 square foot office building in
Manhattan for $200 million. The sale of the building - 866 United
Nations Plaza - is anticipated to close in fourth-quarter 2013
and is currently subject to customary closing conditions.
CHATHAM LODGING (CLDT): Free Stock Analysis
GETTY REALTY CP (GTY): Free Stock Analysis
SABRA HEALTHCR (SBRA): Free Stock Analysis
VORNADO RLTY TR (VNO): Free Stock Analysis
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Through this deal Vornado will reap around $146 million in net
proceeds (after repaying existing debt and closing costs). While
the move will result in a tax gain of around $166 million, it
will be postponed in a like-kind exchange as part of the
company's prior disclosed 655 Fifth Avenue Manhattan property
We expect these concerted efforts to add to Vornado's financial
flexibility and aid in profitable investment opportunities. These
would help strengthen its Class A office properties portfolio
that is concentrated in select high-rent, high barrier-to-entry
geographic markets, which usually fare better amid challenging
Last month, Vornado acquired a 92.5% stake in a retail and office
property, measuring 57,500 square foot located in Manhattan for
$277.5 million. Further, the company completed the assemblage of
220 Central Park South site in Manhattan by acquiring the land
and air rights of the area measuring 137,000 zoning square feet
for $194 million. On the other hand, Vornado sold its property -
Harlem Park - in New York City for $66 million and reaped
approximately $23 million as net gain from the sale.
Vornado currently carries a Zacks Rank #3 (Hold). Some better
performing REITs include
Chatham Lodging Trust
Getty Realty Corp.
Sabra Health Care REIT, Inc.
). All these stocks hold a Zacks Rank #1 (Strong Buy).