Vornado Closes on 49% Stake in Fisher Brothers’ Park Avenue Plaza
Vornado Realty Trust has completed its previously announced acquisition of a 49% interest in Park Avenue Plaza. The 1.2-million-square-foot office property at 55 E. 52nd St. traded at a gross valuation of $1.1 billion, a significant discount to replacement cost.
The trophy, Class A office building, co-owned by Fisher Brothers, has protected Park Avenue views and occupies the full through-block between East 52nd and East 53rd streets. The property is located directly across 52nd Street from Vornado’s 350 Park Ave,e development.
Park Avenue Plaza is 99% occupied by blue-chip tenants with an 11-year weighted-average lease term and substantially below-market rents. Vornado acquired its interest subject to its share of the $575-million loan encumbering the property that bears interest at a fixed rate of 2.99% and matures in November 2031.
Fisher Brothers retains its current 51% ownership interest and continues to manage and lease the property. Vornado and Fisher Brothers have joint control over major decisions.
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