Vornado Reaches Deal on 866 UN Plaza

NEW YORK CITY-The REIT acquired the two-tower office and residential property in 1997 when Bernard Mendik merged his company with Vornado.

By Paul Bubny | Updated on November 08, 2013

NEW YORK CITY-Vornado Realty Trust said Friday it has reached an agreement to sell the office portion of 866 United Nations Plaza for $200 million. The buyer in the like-kind exchange was not identified; VNO had put the six office floors up for sale a year ago, reportedly hiring CBRE vice chairman Darcy Stacom to market the 360,000-square-foot space.

The REIT said the sale would result in net proceeds of approximately $146 million, after repaying existing debt and closing costs, with a financial statement gain of $128 million and a tax gain of $166 million, to be deferred as part of VNO’s previously announced $278-million acquisition of a 92.5% interest in 655 Fifth Ave. The 866 UN Plaza sale is expected to close by year’s end.

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