Vornado Sells Stake in Boston Site

BOSTON-Vornado Realty Trust said Wednesday evening that it has sold its 50% stake in a site located in the Downtown Crossing district here, receiving $45 million in net proceeds with a resulting net loss of $2 million. In its announcement, the REIT did not identify the buyer. Citing unnamed sources, both Bloomberg and Dow Jones Newswires reported it as Millennium Partners, which took over the redevelopment of the original Filene's store last year after the project had sat idle since 2008. A spokeswoman for Millennium declined to comment.

Earlier this month, Millennium told the Boston Globe that the $620-million mixed-use project was about to get going once more, with advertising firm Arnold Worldwide committing to 125,000 square feet at the century-old Filene's building for its global headquarters.  “Downtown Crossing is buzzing with new energy, and Arnold Worldwide's commitment to bring its headquarters to the Filene's building speaks volumes about the future of the neighborhood,” Boston Mayor Thomas M. Menino said in a statement.

Millennium's first order of business will be to redevelop the Filene's building, designed by renowned architect Daniel Burnham, for office as well as retail use. The developer will also build a 450-unit luxury apartment tower, Millennium Place, nearby.

For Vornado's part, the sale is in keeping with the direction spelled out by chairman Steven Roth in his recent annual letter to shareholders. “Our basic instinct is to build, acquire and grow,” Roth wrote earlier this month. “But, my belly tells me that prices are now higher than future prospects and therefore, we will buy carefully and likely sell more than we buy.” The REIT has sold off $2.75 billion worth of assets since April of last year, then-CEO Michael Fascitelli said in late February.