Vornado Sells Interest in 666 Fifth Ave. to Kushner Cos.

Vornado to exit and Brookfield to enter an ownership interest at 666 Fifth Ave.

NEW YORK CITY—Following much industry buzz and a handshake deal, Vornado Realty Trust has entered an agreement to sell its 49.5% stake in 666 Fifth Ave. to its partner, the Kushner Companies. Vornado issued a release stating it will receive $120 million in net proceeds from the sale.

The asset owner, manager and developer stated with the sale of its interest, the existing mortgage loan will be repaid and it will receive net proceeds of approximately $58 million for its participation in the mortgage loan. Vornado’s release noted the financial statement gain is estimated to be $134 million and the tax gain is estimated to be $244 million. Vornado will continue to own the retail space on-site at 53rd Street having 125 feet of street frontage. Tenants include Uniglo, Tissot and Hollister. Vornado declined requests for additional information regarding the buyer or clarification on proceeds received.