NEW YORK CITY—Vornado Realty Trust said Fridayit had completed the sale of 1740 Broadway, a 601,000-square-footoffice tower between West 55th and 56th streets, for $605 million,or $1,000 per square foot. The REIT did notidentify the buyer; published reports indicate it was theBlackstone Group, though itscore-plus real estate fund.


VNO says the financial statement gain of $439 million will berecognized in the fourth quarter. The tax gain of approximately$484 million will be deferred in a like-kind exchange as part ofVNO's previously $700-million announced acquisition of theSt. Regis Hotel retail condominium and theadjacent retail town house.


CoStar reported that CBRE vice chairmen DarcyStacom and William Shanahan arranged thesale of the 26-story office tower, which is fully leased. Majortenants include the Limited Brands, Davis & Gilbert and the NewYork City Department of Taxation and Finance.


Regarding the St. Regis retail space a few blocks east of 1740Broadway, VNO previously announced that it now controlledapproximately 75% of the joint venture which owns the property. Theproperty has 100 feet of frontage on Fifth Avenue on the southeastcorner of 55th Street, in the heart of the area which commands theworld's highest retail rents. VNO also owns 689 Fifth Ave. on thesame block.


As VNO bolsters its presence in high street retail, it is alsoplanning to spin off its considerable presence in shopping centers.The company announced last week that Urban EdgeProperties, a pure-play retail REIT, was expected to begintrading on the New York Stock Exchange in January.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.