Vornado Realty Trust's majority-owned joint venture has agreed to sell its 512 West 22nd Street office property in Chelsea, Manhattan, for $205 million.
The New York-based REIT stated that it anticipates the deal, which is contingent upon certain conditions, to close in the third quarter. The JV plans to use a portion of the proceeds from the sale to pay back the $123.6 million mortgage loan associated with the building.
The REIT has owned 55 percent of 512 West through a JV with The Albanese Organization. The buyer was not disclosed.
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The 173,000 square foot Class A building stands 11 stories, featuring 12-inch to 24-inch ceiling heights and 24/7 security. The floor sizes range from 9,9000 rentable square feet to 22,900 rentable square feet. Its office tenants include IMG Worldwide, Kenneth Cole Productions, Next Jump, Nucleus Advisors LLC and Warner Media. Additionally, 512 West features one retail tenant, Galeria Nara Roesler.
In its first-quarter report, Vornado announced that it leased 709,000 square feet of space in New York during the first three months of 2025, with an average term of 14.7 years. As of March 31, the landlord's office occupancy in its New York footprint was 84.4 percent.
While New York remains one of the nation's top recovering office markets, April represented a slowdown in activity. Leasing volume was 3.38 million square feet, representing a 26.2 percent decrease from the previous month, according to a report from Colliers. However, the category was up 23 percent year-over-year and 25.4 percent above the 10-year monthly median, indicating that the market remains in a strong position.
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