Vornado to buy office condo above Saks Fifth Avenue for $218M

[Street view of New York City Midtown Manhattan buildings on Fifth Ave.]
LeonU/iStock Unreleased via Getty Images

Vornado Realty Trust (NYSE:VNO [https://seekingalpha.com/symbol/VNO]) agreed to buy the 623 Fifth Avenue office [https://seekingalpha.com/pr/20210089-vornado-realty-trust-to-purchase-623-fifth-avenue]condominium, a 36-story, 382.5K rentable square-foot building on top of the flagship Saks Fifth Avenue department store, for $218M, the company said on Monday.

The REIT plans to transform the 75% vacant space, redeveloping it into a class A boutique office building, complementing Vornado's nearby Plaza District and Park Avenue holdings.

The acquisition boosts its presence in the prime midtown Manhattan market. It already owns properties at 280 Park Avenue, 350 Park Avenue, 595 Madison Avenue, 640 Fifth Avenue, and 1290 Avenue of the Americas.

Vornado (NYSE:VNO [https://seekingalpha.com/symbol/VNO]) expects to close the purchase in September and complete the redevelopment for delivery to tenants in 2027.

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