Posted May 14, 2024, 12:09 AM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
Posts: 52,007
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https://finance.yahoo.com/news/q1-20...054019158.html
May 8, 2024
Quote:
Steven Roth
We've been busy. Let's start with Bloomberg. As a reminder, 731 Lexington Avenue, the mixed-use tower, whose 950,000 square foot office condo is Bloomberg's global headquarters is owned by Alexander's, a separately traded public REIT. Vornado owns 32.4% of Alexander's. The background facts are: Bloomberg lease expires in February 2029, and $500 million of debt on the office condo is due next month June 2024.
Yesterday, we announced that we renewed and extended the Bloomberg lease for an 11-year term to begin in February 2029 and take us through February 2040. So 16 years of term from now. As you can imagine, a redeveloper in town tried to poach Bloomberg. And of course, they looked at every opportunity as they must. We are delighted that they chose to stay with 731 Lexington.
By the way, the building is as much Mike's creation as mine. He had significant input into the design of the original building. The design of the building in Bloomberg's internal fit-out are on par with what we would have built today. But of course, now they don't need to.
.....while the New York market has a huge 422 million square feet, when you cancel out the non-prime space, we really only compete in a much smaller 177 million square foot market.
Great things are happening in our PENN District. Come by and take a look. Our team here at Vornado couldn't be more optimistic.
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Quote:
John P. Kim
Okay. And my follow-up is on 350 Park Avenue. The leasing environment and the interest rate environment or the outlook has changed a lot in the past 1.5 years since you struck the deal. What is the likelihood that either Citadel or you exercise your options at this point?
Steven Roth
There's always a likelihood. But right now, we're on full steam ahead to build a world-class headquarters for Citadel. We've started the public approval process. And it's a couple of year process to design the building, complete the drawings, get through the public approval process and obviously, we will reappraise the financial markets at that time. Citadel's growing. They want the space. They're committed to the deal as are we.
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“Office buildings are our factories – whether for tech, creative or traditional industries we must continue to grow our modern factories to create new jobs,” said United States Senator Chuck Schumer.
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