Crescent Heights Acquisitions Inc. will pay $222.5 million for the trophy asset, or about $413,500 per unit. The rental building is an interesting fit for Crescent Heights, a closely held, national developer of mostly condominium assets. The company focuses on such key markets as metro New York, where the Palisades is located, as well as Chicago, South Florida, major West Coast cities and Hawaii.
Vornado says in a press release that the company's share of the gain on sale, after closing costs, will be in the neighborhood of $70 million. The sale, which is subject to customary closing conditions, is expected to be completed by the third quarter of this year. Company officials could not be reached for further comment.
Vornado's key partner in the development of the Palisades, a 1.6-million-sf asset located on Old Palisades Road, is Applied Development Co., based just down the Hudson River in Hoboken, NJ. Applied has been in charge of leasing and managing the building.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.