Vornado buys another NYC property for $700m

Vornado Realty Trust, in partnership with Crown Acquisitions, has agreed to acquire the retail condominium of the St. Regis hotel and the adjacent retail townhouse in New York City. The sales price was $700 million, or $28,226 per square foot.  The seller was luxury goods firm Richemont, which acquired the asset in 2012 for $380.6 million.

The purchase is expected to close by early fourth quarter of this year, subject to customary closing conditions.

Vornado will own between 67 percent and 80 percent, with Crown owning the balance. The final ownership percentages will be based on the amount of debt financing put on the property and Crown’s short-term option to invest additional capital.

The property has 100 feet of frontage on Fifth Avenue on the Southeast corner of 55th Street, in the heart of the area of Fifth Avenue favored by the world