Vornado Realty Trust (VNO - Free Report) , a leading real estate investment trust (REIT), has recently completed the acquisition of 666 Fifth Avenue at 53rd Street – one of the prized retail assets in Manhattan, for $707 million. With the deal, the company has increased its street retail portfolio in the region to 2.3 million square feet.
The acquired property is strategically placed at the heart of Midtown Manhattan in one of the most recognized corridors in the world. The building is encircled by the full spectrum of shopping and entertainment hotspots in the region, offering a plethora of attractions to its tenants. Besides its signature embossed facade, the building also boasts of a well-designed lobby that provides a unique feel of serenity amid the din and bustle of the city.
The acquisition further reinforces Vornado Realty’s strong foothold in the region. The Manhattan portfolio of the company comprises of approximately 28 million square feet across 50 properties. These include Class A office buildings, street retail properties, residential assets, and the Hotel Pennsylvania. Vornado Realty also owns half of the office building above 666 Fifth Avenue at 53rd Street.
New York-based Vornado Realty acquires, owns and leases office properties, retail space and temperature-controlled logistics and refrigerated warehouses. Besides its properties, the company also has investments in other REITs, industrial buildings, retail assets, and Toys ‘R’ Us.
Vornado Realty has a strong asset portfolio in two of the best long-term office markets in the U.S. – New York city and Washington DC. This provides the company with a competitive advantage to continually increase rents. The company also has a healthy balance sheet and adequate liquidity.
We maintain our long-term Neutral rating on Vornado Realty, which currently has a Zacks #2 Rank that translates into a short-term Buy recommendation. We also have a Neutral recommendation and a Zacks #3 Rank (short-term Hold recommendation) for Boston Properties Inc. (BXP - Free Report) , a competitor of Vornado Realty.