Vornado Acquires Retail Properties and Makes Mezzanine Loan
PARAMUS, N.J.--(BUSINESS WIRE)--Nov. 30, 2004--Vornado Realty Trust (NYSE:VNO) today announced that is has acquired a shopping center, in Lodi, New Jersey and contracted to purchase another shopping center in Inwood, Long Island to close in December. These shopping centers contain an aggregate of 185,000 square feet and are 100% leased. The total purchase price is $47.5 million.
Further, Vornado entered into agreements to acquire two retail condominiums containing 12,000 square feet located in the Soho section of Manhattan for approximately $21.8 million. These properties are located close by a 92,500 square foot Soho retail property in which the Company recently acquired a 50% interest. These acquisitions are also expected to be completed in December 2004.
Each of these transactions is being funded as part of Section 1031 tax-free "like-kind" exchanges with a portion of the proceeds from the sale of the Company's Palisades residential complex and Dundalk strip shopping center.
In a separate transaction, Vornado acquired a $43.5 million mezzanine loan secured by Charles Square in Harvard Square in Cambridge, Massachusetts. This property consists of the 293-room Charles Hotel, 110,000 square feet of office space, 30,000 square feet of retail space, a conference center and a 568-car parking facility. The loan, which is subordinate to $82.5 million of other debt, bears interest at 7.56% and matures in September 2009.
Vornado Realty Trust is a fully-integrated equity real estate investment trust.
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 involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.
CONTACT: Vornado Realty Trust
Joseph Macnow, 201-587-1000
SOURCE: Vornado Realty Trust