Vornado Realty Trust plans to acquire 623 Fifth Avenue office condominium for $218 million, aiming for redevelopment by 2027.
Quiver AI Summary
Vornado Realty Trust announced its agreement to purchase the 623 Fifth Avenue office condominium in New York for $218 million. This 36-story building, which offers excellent views of Midtown and is currently 75% vacant, will undergo a complete repositioning and redevelopment to become a premier Class A boutique office space. The acquisition is expected to close in September 2025, with redevelopment aimed for completion by 2027. This project aligns with Vornado's existing properties in the Plaza District and Park Avenue. The company is a fully integrated equity real estate investment trust.
Potential Positives
- Vornado Realty Trust is expanding its portfolio by acquiring a prime property at 623 Fifth Avenue for $218 million, strategically located above a flagship department store.
- The planned repositioning and redevelopment of the 75% vacant building into a best-in-class Class A boutique office space indicates a strong commitment to enhancing its real estate offerings and adapting to market demands.
- This acquisition will complement Vornado's existing high-profile assets in the Plaza District and Park Avenue, strengthening its presence in a prestigious market and potentially increasing overall property value.
- The completion of the redevelopment is projected for 2027, setting the stage for future revenue growth and tenant attraction in a highly desirable location.
Potential Negatives
- The 623 Fifth Avenue building is currently 75% vacant, indicating potential challenges in leasing the space and generating income.
- The significant investment of $218 million for a property with such high vacancy raises concerns about the company’s allocation of capital and potential return on investment.
- The reliance on forward-looking statements highlights risks and uncertainties, including interest rate fluctuations and inflation, which could materially affect Vornado's financial condition and future performance.
FAQ
What property is Vornado Realty Trust purchasing?
Vornado Realty Trust is purchasing the 623 Fifth Avenue office condominium, a 36-story building in New York City.
How much is the acquisition cost for 623 Fifth Avenue?
The total acquisition cost for the 623 Fifth Avenue property is $218 million.
What are Vornado's plans for the building?
Vornado intends to completely reposition and redevelop the building into a premier Class A boutique office space.
When does Vornado expect to complete the redevelopment?
Vornado expects to complete the redevelopment of 623 Fifth Avenue and deliver it to tenants in 2027.
What is the current occupancy rate of the building?
The building is currently 75% vacant, indicating it needs significant redevelopment and repositioning.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$VNO Insider Trading Activity
$VNO insiders have traded $VNO stock on the open market 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $VNO stock by insiders over the last 6 months:
- HAIM CHERA (EVP- HEAD OF RETAIL) sold 20,000 shares for an estimated $759,629
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$VNO Hedge Fund Activity
We have seen 207 institutional investors add shares of $VNO stock to their portfolio, and 217 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- DEUTSCHE BANK AG\ removed 2,742,441 shares (-92.9%) from their portfolio in Q2 2025, for an estimated $104,870,943
- JPMORGAN CHASE & CO added 2,344,037 shares (+88.1%) to their portfolio in Q2 2025, for an estimated $89,635,974
- CITADEL ADVISORS LLC added 1,588,073 shares (+132.9%) to their portfolio in Q2 2025, for an estimated $60,727,911
- RESOLUTION CAPITAL LTD added 1,296,163 shares (+inf%) to their portfolio in Q2 2025, for an estimated $49,565,273
- RUSSELL INVESTMENTS GROUP, LTD. removed 870,706 shares (-77.6%) from their portfolio in Q2 2025, for an estimated $33,295,797
- NORTHERN TRUST CORP removed 677,751 shares (-24.3%) from their portfolio in Q2 2025, for an estimated $25,917,198
- WATERFRONT CAPITAL PARTNERS, LLC removed 666,621 shares (-87.0%) from their portfolio in Q2 2025, for an estimated $25,491,587
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$VNO Analyst Ratings
Wall Street analysts have issued reports on $VNO in the last several months. We have seen 0 firms issue buy ratings on the stock, and 1 firms issue sell ratings.
Here are some recent analyst ratings:
- Barclays issued a "Underweight" rating on 08/21/2025
To track analyst ratings and price targets for $VNO, check out Quiver Quantitative's $VNO forecast page.
$VNO Price Targets
Multiple analysts have issued price targets for $VNO recently. We have seen 7 analysts offer price targets for $VNO in the last 6 months, with a median target of $39.0.
Here are some recent targets:
- Ross Smotrich from Barclays set a target price of $33.0 on 08/21/2025
- Steve Sakwa from Evercore ISI Group set a target price of $44.0 on 08/06/2025
- Nicholas Yulico from Scotiabank set a target price of $45.0 on 07/14/2025
- Vikram Malhorta from Mizuho set a target price of $43.0 on 07/14/2025
- Michael Lewis from Truist Securities set a target price of $38.0 on 06/03/2025
- Alexander Goldfarb from Piper Sandler set a target price of $39.0 on 05/23/2025
- Ronald Kamdem from Morgan Stanley set a target price of $28.0 on 03/14/2025
Full Release
Vornado Realty Trust
623 Fifth Avenue
NEW YORK, Aug. 25, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that it has entered into an agreement to purchase the 623 Fifth Avenue office condominium, a 36-story, 382,500 rentable square foot building situated above the flagship Saks Fifth Avenue department store, for $218 million. The building’s location provides for excellent light and air and sweeping, protected views of Midtown including Rockefeller Center and St. Patrick’s Cathedral.
The building is currently 75% vacant and Vornado intends to completely reposition and redevelop it into a premier, best-in-class, Class A boutique office building. The fully transformed 623 Fifth Avenue building will complement Vornado’s nearby Plaza District and Park Avenue holdings of 280 Park Avenue, 350 Park Avenue, 595 Madison Avenue, 640 Fifth Avenue, 689 Fifth Avenue and 1290 Avenue of the Americas.
Vornado expects to close the acquisition in September 2025 and complete the redevelopment for delivery to tenants in 2027.
Vornado Realty Trust is a fully-integrated equity real estate investment trust.
C O N T A C T
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. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. 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, 2024. Currently, some of the factors are interest rate fluctuations and the effects of inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have 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.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/348c405b-31ea-4fbb-b0c1-f11fa056e59d
