NEW YORK CITY-Three stories of prime retail space adjacent to Vornado Realty Trust's Bloomberg Tower is on the block. Haber Realty Group is marketing the fee-simple interest in 715 Lexington Ave., which currently is net leased to VNO. Broker Steven Haber of HRG tells GlobeSt.com that the asking price is around $50 million, and adds, “We are close to a deal.”
The 20,400-square-foot 715 Lexington is located on the southeast corner of 58th Street and Lexington Avenue. Tenants there include New York & Co., Phyto Universe and Zales.
When VNO developed the Bloomberg Tower at 731 Lexington Ave. in 2004, it also acquired buildings surrounding the 1.5-million-square-foot tower and demolished them to make way for the architecturally similar 715 Lex, the New York Times reported in 2006. "It was a strategy by Vornado to master plan not only the block that the Bloomberg building sits on, but the neighborhood to some degree," Josh N. Kuriloff of Cushman & Wakefield told the Times in '06. “They did this with a keen eye toward architecture. They, in my opinion, single-handedly and dramatically increased the value of the neighborhood.”
VNO's current net lease on 715 Lex is for 10 years, with an 18-year renewal option. The new owner will inherit the lease, says Haber.
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