NEW YORK CITY-Continuing its emphasis on urban retail as it sells off suburban mall properties, Vornado Realty Trust said late Tuesday afternoon that it's buying a 92.5% interest in 655 Fifth Ave., a 57,500-square-foot retail and office property in the heart of the Fifth Avenue shopping corridor. The REIT will plunk down $278 million for the controlling stake, a far cry from the $71 million paid by a joint venture including Madison Capital to acquire the then-troubled property in 2010. Madison will continue to own the remaining 7.5%.

The property is net leased to luxury retailer Ferragamo for its flagship Manhattan store. Ferragamo's store is also located in the adjacent 661 Fifth Ave., which it owns.

In October of '10, a JV including Madison, LoanCore Capital Partners and Meadow Capital Partners bought 655 Fifth as part of a portfolio, resolving a troubled situation, according to Real Capital Analytics data. The following August, the CPP Investment Board acquired a 32% interest for an undisclosed sum.

Last December, VNO paid nearly $708 million for the retail condominium portion of nearby 666 Fifth Ave. The retail condo, which is leased to Uniqlo, Hollister and Swatch, does not include 666 Fifth's 38,750-square-foot former NBA store, which Spanish retailer Inditex bought in March 2011 for a record-setting $324 million.