Vornado to acquire 623 Fifth Avenue office condo for $218 million

Published 25/08/2025, 13:12
Vornado to acquire 623 Fifth Avenue office condo for $218 million

NEW YORK - Vornado Realty Trust (NYSE:VNO), a $7.94 billion market cap REIT trading at an attractive P/E ratio of 8.91, announced Monday it has agreed to purchase the 623 Fifth Avenue office condominium for $218 million, a 36-story building with 382,500 rentable square feet located above the flagship Saks Fifth Avenue department store.

The property, currently 75% vacant, will undergo a complete repositioning and redevelopment to transform it into what the company describes as a "premier, Class A boutique office building." The acquisition is expected to close in September 2025, with redevelopment completion and tenant delivery targeted for 2027.

The building offers views of Midtown Manhattan landmarks including Rockefeller Center and St. Patrick’s Cathedral, according to the company’s press release statement.

This acquisition will add to Vornado’s existing portfolio of nearby Plaza District and Park Avenue properties, which includes 280 Park Avenue, 350 Park Avenue, 595 Madison Avenue, 640 Fifth Avenue, 689 Fifth Avenue, and 1290 Avenue of the Americas.

Vornado Realty Trust is a fully-integrated equity real estate investment trust that primarily owns and operates office properties in New York City.

In other recent news, Vornado Realty Trust reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.18, which surpassed the forecasted $0.13. However, the company’s revenue did not meet expectations, coming in at $441.44 million compared to the anticipated $459.27 million. In addition to their earnings report, Vornado Realty Trust completed the sale of a 173,000 square foot Class A office building located at 512 West 22nd Street for $205 million. This transaction was conducted through its 55% owned joint venture. After settling a $123 million mortgage loan on the property and covering related expenses, Vornado’s share of the net proceeds amounted to approximately $38 million. These developments reflect the company’s ongoing activities and financial performance.

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