**Vornado to Acquire Office Condo Above Saks Fifth Avenue for $218 Million**
Vornado Realty Trust announced on Monday that it has entered into an agreement to acquire the office condominium at 623 Fifth Avenue for $218 million. The 36-story, 382,500-square-foot building is located above the iconic Saks Fifth Avenue flagship store. According to Crain’s New York Business, the sale—brokered by developer Charles Cohen—was completed at less than half the property’s previously assigned value. Cohen had reportedly considered converting the office space into residential units last year.
Currently, the building is approximately 75% vacant. Vornado plans to undertake a comprehensive redevelopment of the property, aiming to transform it into a premier, best-in-class Class A boutique office building. In a statement, the company noted that the refurbished property will strategically complement its portfolio of nearby assets in the Plaza District and along Park Avenue, including 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 slated for completion and tenant occupancy in 2027.
