Vornado Completes Sale of Long Island City Office Building for $172.8 Million

Rhea-AI Summary

Vornado Realty Trust (NYSE:VNO) has successfully completed the sale of the Center Building in Long Island City, New York, for $172.8 million. This eight-story office building spans 498,000 square feet. The company anticipates a financial gain of $15 million to be recognized in the second quarter, along with a tax gain estimated at $74 million.

Vornado Realty Trust operates as a fully-integrated equity real estate investment trust.

Positive

• Sale of Center Building realized $172.8 million, enhancing liquidity.
• Financial gain estimated at $15 million boosts Q2 results.
• Tax gain of $74 million positively impacts financial position.

Negative

• None.

NEW YORK, July 05, 2022 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that it has completed the previously announced sale of the Center Building, an eight-story 498,000 square foot office building located at 33-00 Northern Boulevard in Long Island City, New York, for $172.8 million. The financial statement gain, which will be recognized in the second quarter, is estimated to be $15 million. The tax gain is estimated to be $74 million.

Vornado Realty Trust is a fully-integrated equity real estate investment trust.

CONTACT

Thomas J. Sanelli
(212) 894-7000

Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2021. Such factors include, among others, risks associated with the performance of the Company’s properties and general competitive factors. Currently, one of the most significant factors is the ongoing adverse effect of the COVID-19 pandemic on our business, financial condition, results of operations, cash flows, operating performance and the effect it has had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general. The extent of the impact of the COVID-19 pandemic will continue to depend on future developments, including the duration of the pandemic, current and future variants, the efficacy and durability of vaccines against the variants and the potential for increased government restrictions, which continue to be uncertain at this time but that impact could be material. Moreover, you are cautioned that the COVID-19 pandemic will heighten many of the risks identified in "Item 1A. Risk Factors" in Part I of our Annual Report on Form 10-K for the year ended December 31, 2021.

FAQ

What is the recent sale by Vornado Realty Trust (VNO)?

Vornado Realty Trust announced the sale of the Center Building for $172.8 million.

How much financial gain will VNO recognize from the sale?

Vornado Realty Trust estimates a financial gain of $15 million from the sale.

What is the estimated tax gain from the sale by VNO?

The estimated tax gain from the sale of the Center Building is $74 million.

Where is the Center Building located that VNO sold?

The Center Building is located at 33-00 Northern Boulevard in Long Island City, New York.