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Vornado announced it has officially formed an agreement to sell its interest in the beleaguered office tower at 666 Fifth Ave. to partner Kushner Cos. for $120M. Vornado announced it had reached a “handshake" deal to sell its 49.5% stake in the building last month.
The net proceeds from the deal will be $120M, Vornado said Friday. The REIT will continue to own all of the retail condominium in the building.
Along with the proceeds from the sale, Vornado will receive around $58M in the refinancing of the building’s mortgage. The sale is expected to close in the third quarter.
Brookfield is in late-stage discussion to form a partnership with Kushner that would mean the Canadian equity giant would take over the renovations at the building. Brookfield CEO Ric Clark has confirmed the firm’s involvement in the potential deal. He said earlier this month Brookfield may take a similar approach with 666 Fifth as it did with its renovation and repositioning at 5 Manhattan West.
The Kushner’s bought 666 Fifth for $1.8B in 2007, a decision Charles Kushner has since said was marred by "bad timing and bad judgment.”
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