NEW YORK CITY-Publicly-traded REIT Vornado Realty Trust has entered into two separate agreements to sell $306 million worth of prime Chicago and Manhattan assets. According to Real Capital Analytics, Vornado will be selling the 1.2 million-square-foot former Apparel Center at 350 West Mart Center to San Francisco-based Shorenstein Properties LLC for approximately $228 million. On the New York side, it will sell four small mixed-use properties in Manhattan for $78 million. Sources close to the deal say the investor is Steven Elghanayan.
In total, the two sale transactions will result in net cash proceeds of approximately $290 million and a net gain of approximately $55 million, according to a statement from Vornado. The sales are subject to customary closing conditions and, although there can be no assurances that the sales will be consummated, it is expected that the closings will occur by first quarter 2012, the REIT says.
The 20-story West Mart Center is 95% occupied and major tenants include 1st Century Telecom GroupInc., Ameritech Mobile Communication, Chicago Sun-Times, Comcast Cablevision and Fiserv Solutions, Inc, according to RCA. A spokesperson for Vornado did not return a phone call about the locations of the Manhattan sites to GlobeSt.com in-time for deadline.