Vornado and Rudin Announce Agreements with Respect to 350 Park Avenue and 40 East 52nd Street
In addition, Vornado has entered into a joint venture with Rudin (“Vornado/Rudin”) to purchase
From
- acquire a 60% interest in a joint venture with Vornado/Rudin that would value the Site at
$1.2 billion ($900 million to Vornado and$300 million to Rudin) and build a new 1.7 million square foot trophy office tower (the “Project”) pursuant to East Midtown Subdistrict zoning with Vornado/Rudin as developer. KG would own 60% of the joint venture and Vornado/Rudin would own 40% (with Vornado owning 36% and Rudin owning 4% of the joint venture along with a$250 million preferred equity interest in the Vornado/Rudin joint venture).- at the joint venture formation,
Citadel or its affiliates will execute a pre-negotiated 15-year anchor lease with renewal options for approximately 850,000 square feet (with expansion and contraction rights) at the Project for its primary office inNew York City ; - the rent for Citadel’s space will be determined by a formula based on a percentage return (that adjusts based on the actual cost of capital) on the total Project cost;
- the master leases will terminate at the scheduled commencement of demolition;
- at the joint venture formation,
- or, exercise an option to purchase the Site for
$1.4 billion ($1.085 billion to Vornado and$315 million to Rudin), in which case Vornado/Rudin would not participate in the new development.
The parties intend to immediately commence design of the Project and process approvals.
Further, Vornado/Rudin will have the option from
There can be no assurance that the agreements will be completed on the terms outlined above or at all.
About
About Rudin
The Rudin family controls one of the largest privately owned real estate companies in
CONTACT
(212) 894-7000
Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including descriptions of the terms of the leases and joint venture arrangements with Rudin and KG, involve known and unknown risks, uncertainties and other factors which may cause the actual terms of such leases and agreements, results, performance or achievements of the Company to be materially different from any terms, future results, performance or achievements expressed or implied by such forward-looking statements. For a discussion of factors that could materially affect the outcome of Vornado’s forward-looking statements and its future results and financial condition, see “Risk Factors” in Part I, Item 1A, of Vornado’s Annual Report on Form 10-K for the year ended
Source: Vornado Realty Trust