Vornado sells two SoHo retail properties for $23.5M
By NATALIE SACHMECHI
December 19, 2022
Publicly traded real estate investment firm Vornado Realty Trust has sold two mixed-use SoHo buildings to a group of unnamed investors for $23.5 million, Crain’s has learned.
The six-story properties at 484-486 Broadway contain ground-floor retail occupied by Madewell and J. Crew, just over 3,200 square feet of office space that can be converted to apartments, and apartments above.
The office space is currently vacant, according to Nicholas Judson, the broker representing the group of buyers operating as Portfolio4 LLC, but it’s too early to tell whether the new owners will be converting it to residential units, he said.
The investment group paid cash for the two buildings, which in total comprise 21,000 square feet, Judson said. He declined to name the owners of Portfolio4 LLC, though it’s registered under property management firm Tri-Star Equities.
Vornado purchased the buildings in 2007 for $14 million, property records show. The firm was represented by James Nelson, Brent Glodowski and Kate Kabili of Avison Young.
Vornado did not respond to a request for comment on the sale. Economic headwinds have pushed the company in a more conservative direction where its portfolio is concerned.
The company has paused the development of the area around Penn Station, where it plans to erect 10 million square feet of commercial and residential space, and its chief executive Steven Roth announced in November that the company would be cutting its dividend in 2023.
Its shares are currently trading at $21.40, the lowest they’ve been since 2010 and 28% below their March 2020 low.