NEW YORK CITY—Vornado Realty Trust—in partnership with CrownAcquisitions—has entered into an agreement to acquire the retailcondominium of the St. Regis Hotel and the adjacent retailtownhouse for approximately $700 million. The property has 100 feetof frontage on Fifth avenue, on the Southeast corner of 55thstreet. Vornado also owns 689 Fifth Avenue on the same block.
The property's tenants include the Gucci division of Kering,which holds 17,100 square feet for its Bottega Veneta brand throughJanuary 2016; and LVMH, which has 7,600 square feet for its DeBeersbrand through January 2019.
Vornado will own between 67% and 80% of the property, with Crownowning the balance. The GAAP yield on the transaction is estimatedat over 4%. The final ownership percentages will be based on theamount of debt financing put on the property and Crown's short-termoption to invest additional capital. The purchase is expected toclose by early fourth quarter of this year, subject to customaryclosing conditions.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
