Aug 15, 2023
Vornado Explores Possible Sale of Manhattan’s Farley Building
, Bloomberg News
(Bloomberg) -- Vornado Realty Trust is exploring options for its redeveloped Farley Building, as it seeks to shore up liquidity during a commercial-property downturn.
Vornado is exploring options including a partial or entire sale of the building, according to people familiar with the matter who asked not to be identified citing private information. The company could also put a mortgage on the asset, which currently has no debt on it, the people said.
The REIT, led by billionaire Steven Roth, has tapped Newmark Group Inc.’s co-heads of US capital markets, Adam Spies and Douglas Harmon, to handle the process, the people familiar with the matter said. Discussions are still preliminary and it’s unclear exactly what path Vornado will pursue.
The former Post Office building, located across from New York’s Pennsylvania Station, is leased to tech giant Meta Platforms Inc. The company signed the deal for 730,000 square feet (67,800 square meters) in the depths of the pandemic in 2020, with a 15-year term. Green Street’s Real Estate Alert first reported that Vornado was exploring its options for the building.
A spokesperson for Newmark declined to comment. Vornado didn’t immediately respond to a request for comment.
Read More: Facebook Pushes Ahead With NYC Farley Project in Bet on Offices
“It’s arguably one of the best buildings of its type and kind in the city,” Roth, Vornado’s chief executive officer, said during an earnings call earlier this month. He added that the Farley Building “could be an important source of liquidity.”
Vornado and other property owners have been hit by soaring borrowing costs and falling values over the past year. The Manhattan-based company has been active in selling assets in a bid to boost liquidity. Earlier this year, the firm announced deals to offload four retail properties in Manhattan and the Armory Show.
Vornado has sought to redevelop more than 5 million square feet of real estate near Penn Station. But the plans are in turmoil given the uncertainty in the commercial real estate market.
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