NEW YORK — Real estate investment firm Vornado Realty Trust announced it has entered into agreements to sell five struggling Manhattan retail properties located at 677 – 679, 759 – 771 and 828 – 850 Madison Avenue, 478-482 Broadway and 155 Spring Street for $184.5 million.
Vornado says the properties currently have negative income and street level occupancy is approximately 30%.
Retail properties have been hurt by the pandemic in Manhattan with fewer foreign visitors in NY and office workers working at home.
The Vornado properties are being sold in three separate sale transactions. The sale of the Madison Avenue properties is expected to close in the third quarter of 2021 and the sale of the Soho properties is expected to close in the first quarter of 2022. The transactions are subject to customary closing conditions.
There will be a total financial statement loss of approximately $7 million. The properties are unencumbered says Vornado.