**Vornado to Acquire 623 Fifth Avenue Office Condominium for $218 Million**
Vornado Realty Trust announced on Monday that it has agreed to purchase the office condominium at 623 Fifth Avenue for $218 million. The 36-story, 382,500-square-foot tower is located directly above the Saks Fifth Avenue flagship store in Midtown Manhattan. The building, currently 75% vacant, was sold by developer Charles Cohen, who had previously considered converting the office space into residential units. The sale price is reportedly less than half of the property’s most recently assigned value, according to Crain’s New York Business.
Vornado plans to undertake a full-scale redevelopment of the tower, aiming to reposition it as a premier, best-in-class, Class A boutique office building. In a statement, the company emphasized that the transformed 623 Fifth Avenue will enhance its existing portfolio in the nearby Plaza District and Park Avenue area, which includes properties such as 280 Park Avenue, 350 Park Avenue, 595 Madison Avenue, 640 Fifth Avenue, 689 Fifth Avenue, and 1290 Avenue of the Americas.
The acquisition is expected to close in September 2025, with redevelopment completion and tenant occupancy targeted for 2027.
