Vornado Sells Springfield Town Center for $465M

SPRINGFIELD, VA—Vornado Realty Trust has entered into an agreement with Pennsylvania REIT to sell Springfield Town Center for $465 million in a cash-and-stock transaction that was negotiated off market. The 1.35-million-square foot retail center is currently closed, except for the Macy’s, Target and JCPenney anchors, as it undergoes an extensive renovation.

The center will be trading hands when the rebuilding is complete in the fourth quarter of this year. PREIT is paying $340 million in cash and $125 million of PREIT operating partnership units under the deal, which has been structured as a tax-free exchange. The closing will be no later than March 31, 2015. By that point it is hoped that 75% of the 703,000 square feet of non-anchor space will have been leased and Dick’s Sporting Goods and Regal Cinema will have opened.