**Vornado CEO: Chicago, San Francisco Properties May Hit the Market**
Calling Manhattan “the strongest real estate market in the country,” Vornado Realty Trust Chairman and CEO Steven Roth announced this week that the company may consider divesting two major assets located outside New York: the Merchandise Mart in Chicago and 555 California Street in San Francisco.
“These two assets may be on the for-sale list for the right deal at the right time,” Roth said during Vornado’s second-quarter earnings call.
Regarding 555 California Street, Roth emphasized its value, calling it “the single best asset in San Francisco.” He also noted that San Francisco is currently in a recovery phase — one that Vornado believes will be “very dramatic” — potentially creating favorable conditions for a sale “at the right price.”
In contrast, Roth expressed strong confidence in Manhattan’s real estate landscape, especially in the Class A office sector. “I believe the next few years have the potential to be one of the strongest periods of rental growth we’ve seen in decades,” he stated.
Pictured: Vornado’s PENN 1 in Midtown Manhattan.
