Vornado joint venture to sell portion of Uniqlo store for $350M

Vornado announced that its 52% owned street retail joint venture has entered into an agreement to sell Uniqlo the portion of its U.S. flagship store at 666 Fifth Avenue owned by the retail joint venture for $350M. The joint venture owns the fee condominium interest in 17,295 square feet of Uniqlo’s 90,732 square foot store. In conjunction with the closing, the pass-through leases between the office condominium owner and the retail joint venture will be terminated. The joint venture will continue to own 23,832 square feet of retail space at 666 Fifth Avenue consisting of the Abercrombie & Fitch and Tissot stores. All of the estimated $340M of net proceeds from the sale are expected to be used to partially repay Vornado’s $390M of preferred equity on the asset. The sale is subject to customary closing conditions and the concurrent closing by Uniqlo of its separate transaction with the office condominium owner for the remainder of its store and is expected to close once the formation of the new condominium interests are completed, anticipated to occur by the first quarter of 2025.