Vornado Takes H Street Corp. for $247M

WASHINGTON, DC-In a transaction valued at $246.6 million, Paramus, NJ-headquartered Vornado Realty Trust has acquired locally based H Street Building Corp. Vornado shelled out $194.5 million in cash as partial payment for the business; the remaining payment came in the form of a $52.1 million pro-rata share of existing mortgages.

Vornado's purchase leaves the REIT in possession of H Street's interests in land and commercial properties here and in Northern Virginia. H Street has a 50% interest--in the form of stock ownership in corporations--of a portfolio of real estate consisting of a 1,670-unit multifamily property, 10 acres that are slated for development, and an additional 34 acres. The assets include two office facilities accounting for an aggregate 577,000 sf. Neither Vornado nor H Street responded to GlobeSt.com inquiries by deadline.

The H Street Building property interests will enhance Vornado's presence here. Just last month the company rounded out its 10% stake in the 231,000-sf Bowen Building in the central business district by purchasing the remaining 90% interest from Real Estate Capital Partners for $119 million. Through its subsidiary Charles E. Smith, Vornado owns more than 10 office buildings in the District, as well as numerous offices in Northern Virginia and suburban Maryland. The company also has a handful of retail properties in Northern Virginia and suburban Maryland.

In other recent Vornado news, the REIT committed to purchasing a 37-unit rental property with ground-level retail on Madison Ave. in New York for $158 million, and it spent $113 million on the acquisition of the 17,000-sf retail condominium segment of New York City's former Westbury Hotel. Additionally, Vornado put up $450 million for a one-third interest in a joint venture acquiring Toys "R" Us Inc. And earlier this week, Vornado and the Related Cos. were selected to redevelop New York City's Farley Post Office. The $818-million project involves 300,000 sf of space for the train station, 850,000 sf for commercial space--including as much as 100,000 sf of retail--and up to one million sf of air rights for residential housing across the street.