The Midtown property, located between 45th and 46th streets, contains 152,000 sf of retail space and 906,287 sf of office space. Paramount Group Inc., in partnership with Principal Real Estate Investors, paid about $426 million for the building two years ago. Doug Harmon of Eastdil Secured acted as the exclusive advisor the seller, Paramount Group.

The office tower is currently 97.5% leased. However, because of a scheduled near-term tenant vacancy, Equity will have a large block of space available in a market with rapidly tightening fundamentals.

"Office space is what we do, that's why we had a partner in Vornado to take the retail space," Shobi Khan, Equities Properties' senior vice president, investments, tells GlobeSt.com. "There is a 250,000-sf vacancy coming in the near future. That's a large block in area with an insatiable demand for real estate."

Richard Kincaid, Equity's president and chief executive officer, commented in a statement, "By focusing our acquisition solely on the office portion of the property, we were able to acquire our interest at well below replacement cost."

The Vornado part of the acquisition also includes the rights to building's signage and parking components for a total price of about $260 million. Calls to Vornado were not returned by press time.