Vornado Completes Mart Asset Sales; and Sells Washington Office Building
VORNADO REALTY TRUST (NYSE: VNO) announced today that it has agreed to sell Mart segment assets, the Washington Design Center, the Boston Design Center, the L.A. Mart and the Canadian Trade Shows.
The total sales price for these assets is approximately $228 million of which $193 million is cash and $35 million is 9-month seller financing for the L.A. Mart. Net proceeds will be approximately $144 million after closing costs, $67 million of indebtedness on the Boston Design Center and income taxes on the gain on the sale of the Canadian Trade Shows.
The sales of the L.A. Mart and the Canadian Trade Shows have closed. The other sales are subject to customary closing conditions and are expected to close in the third quarter. The Company will recognize an $11.9 million loss in the second quarter and a $24.5 million gain in the third quarter, including non-comparable Funds From Operations of $19.2 million from the sale of the Canadian Trade Shows.
As previously reported in January, Vornado sold the Mart segment's 350 West Mart Center for $228 million, resulting in a $55 million gain. Vornado also is in the process of transferring 7 West 34th Street to its New York segment.
Vornado continues to own the 3.5 million square foot Chicago Merchandise Mart.
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