Vornado’s recently released annual report from CEO Steven Roth has provided some more details on the company’s plans for the DC market.
The company continues to focus on separating its holdings in the region into its own freestanding business unit. Vornado first touched on the possibility of spinning off its DC office and retail holdings in a letter to shareholders last year.
The company’s report notes that its business in the region, particulary its NoVa assets, is “bouncing along the bottom,” and also notes the difficulty of navigating through deals in the current market. Although the market in DC as a whole has improved, there remain serious drains on the REIT’s bottom line.
Among those drains are the expansive Skyline properties in NoVa, an asset that Vornado specifically mentions as one they've begun the process of disposing of. While Vornado may be looking to spin off its assets in the region, the REIT seems bullish on the future of the nation’s capital, and notes DC’s sizable future development pipeline.
Among the projects on tap for Vornado are a full modernization of the Crystal Square 3 office building in Crystal City, and a massive five-phase redevelopment in Rosslyn. That project, a JV with Gould Property Co, is slated to bring five new buildings spanning more than 2.5M SF to a 7.65-acre site.
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