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NEW YORK CITY-Vornado Realty Trust picks up a 62,000-sf free-standing retail site located just off of Union Square at 25 West 14th St. here for $40 million. The building, which originally constructed in 1929 and recently renovated, is currently 87% occupied. According to the REIT, the purchase will be funded as part of a Section 1031 tax-free “like-kind” exchange with a portion of the proceeds from the sale of its Palisades Residential Complex which is expected to be completed by the third quarter.

Last month, the Paramus, NJ-based REIT picked up the 165,000-sf Forest Plaza Shopping Center on Staten Island for approximately $32.5 million in a similar 1031-like exchange. The firm also completed a $300 million refinancing of its 1.5 million sf Two Penn Plaza. That loan bears interest at 4.97% and matures in February 2011. Vornado realized net proceeds of $147 million after repaying the existing $151 million loan on the property and closing costs.

Broad Street Advisors LLC acted as advisor to the seller, DPSW West 14 LLC. According to Keith Broemmer, executive vice president at Broad Street, the $647 per sf was one of the highest per sf sales for a stand-alone class B retail sites in Manhattan. Competition for the site was strong, as more than 180 investors requested packages on the property, Broemmer adds.

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