Vornado Realty Trust has agreed to acquire a 49% interest in Park Avenue Plaza from Closer Properties at a gross asset valuation of $1.1 billion, a level the firms characterize as a significant discount to replacement cost. Park Avenue Plaza is a 45-story, 1.2-million-square-foot office tower at 55 E. 52nd St., situated directly across 52nd Street from Vornado’s 350 Park Ave. development. The property is co-owned by Fisher Brothers, which has been a long-standing owner of the building.
The building is reported to be 99% leased to blue-chip tenants, underscoring the asset’s positioning in the top tier of the office market. As part of the transaction, Vornado will assume its pro rata share of the $575 million loan currently secured by the property. That financing carries a fixed interest rate of 2.99% and is scheduled to mature in November 2031, providing a long-dated, in-place capital structure on the asset.
Following the closing of the transaction, Fisher Brothers will retain its current 51% ownership interest in Park Avenue Plaza. The firm will continue to manage and lease the property, maintaining its operational role at the building. Vornado and Fisher Brothers will jointly control major decisions related to the asset, reflecting a formalized governance structure between the two ownership partners.
Vornado indicated that its new stake in Park Avenue Plaza will sit alongside a broader concentration of nearby holdings in the Plaza District. The real estate investment trust cited a cluster of assets in the immediate area, including 280 Park Ave., 595 Madison Ave., 623 Fifth Ave., 640 Fifth Ave., 689 Fifth Ave., 3 E. 54th Street and 1290 Ave. of the Americas, as well as its planned 350 Park Ave. development. By adding Park Avenue Plaza to this group, Vornado further builds its presence among institutional-grade office properties in this corridor.
The transaction structure centers on the transfer of Closer Properties’ 49% interest to Vornado, leaving Fisher Brothers’ majority stake and operating responsibilities in place. With occupancy at Park Avenue Plaza reported at 99% and financing locked in at a sub-3% fixed rate through 2031, the transaction combines high physical occupancy with long-term debt visibility for the new co-ownership group.
