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Vornado's JV Sells 512 West 22nd Street Property for $205M

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Key Takeaways

  • Vornado's 55% JV sold a 173,000 sq. ft. office building, 512 West 22nd Street, for $205M.
  • After mortgage loan repayment and expenses, VNO's share of net proceeds from the sale is nearly $38M.
  • VNO anticipates an $11M gain from this deal in Q3 2025, following a major JV sale earlier this year.

Vornado Realty Trust (VNO - Free Report) recently announced that its 55%-owned joint venture (JV) sold 512 West 22nd Street, a 173,000-square-foot Class A office building, for $205 million.

Following the repayment of the $123 million mortgage loan tied to the property, along with the transaction expenses, the company's share of the net proceeds amounts to nearly $38 million.

In the third quarter of 2025, Vornado expects to report an approximate $11 million financial statement gain from this transaction.

VNO: In Snapshot

Vornado, focused on improving its core business, is making opportunistic developments and divestitures in addition to business spin-offs. Strategic sell-outs provide the company with the dry powder to reinvest in opportunistic developments and redevelopments.

In January 2025, Vornado’s 52%-owned street retail JV, Fifth Avenue and Times Square, completed the sale of the portion of its U.S. flagship store at 666 Fifth Avenue to UNIQLO for $350 million and realized net proceeds of $342 million.

Vornado’s focus on having assets in a few select high-rent, high-barrier-to-entry geographic markets and its diversified tenant base, including several industry bellwethers, are expected to fuel its growth over the long term.

In the past three months, shares of this Zacks Rank #3 (Hold) company have declined 6.3% compared to the industry's fall of 2.4%.

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Host Hotels & Resorts (HST - Free Report) and W.P. Carey (WPC - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for HST’s 2025 FFO per share has moved 4 cents northward to $1.95 over the past month.

The Zacks Consensus Estimate for WPC’s 2025 FFO per share has moved a cent downward to $4.87 over the past month.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.


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