Vornado Realty Trust is buying out Canada Pension Plan Investment Board’s 45% stake in One Park Ave., taking full ownership of the 943,000 square foot Manhattan office.
The purchase price values the property at $875 million. The REIT is paying CPP Investments approximately $158 million in cash plus Vornado is assuming $525 million in debt.
One Park Avenue is 67% leased to New York University through May 2050. Vornado originally acquired a stake in the property in March 2011 at a $394 million valuation and recapitalized the property with CPP Investments in June 2014 at a $560 million valuation.
The purchase is expected to close in the third quarter of 2021, subject to customary closing conditions.