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Vornado Realty Trust

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This article is about the real estate investment trust. For the fan manufacturer, see Vornado Air.
Vornado Realty Trust
Company typePublic
IndustryReal estate investment trust
Founded1982; 42 years ago (1982) in Maryland, U.S.
Headquarters
New York City, New York
,
U.S.
Key people
 Steven Roth (chairman & CEO)
Michael J. Franco (CIO)
Joseph Macnow (CFO)
ProductsOffice buildings
RevenueIncrease US$1.589 billion (2021)
Increase US$175 million (2021)
Total assetsIncrease US$17.266 billion (2021)
Total equityDecrease US$6.515 billion (2021)
Number of employees
3,224 (2021)
Websitevno.com
Footnotes / references
[1]
1999 K Street NW in Washington, D.C. was developed by Vornado Realty Trust and sold for $208M in 2009. It was designed by architect Helmut Jahn.
Suma
330 Madison Avenue, owned by Vornado

Vornado Realty Trust is a real estate investment trust formed in Maryland in 1982, with its primary office in New York City. The company invests in office buildings and street retail in Manhattan.

Investments

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Notable properties owned by the company include:[1]

The company also owns:

History

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Two Guys

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The origins of the company can be traced back to the Two Guys discount store chain, founded in 1947 by brothers Sidney and Herbert Hubschman.[3] In 1959, Two Guys acquired O. A. Sutton Corporation, manufacturers of the Vornado line of electric fans, and the company was subsequently renamed Vornado Inc.[3]

By 1964, the company operated over 200 stores.[4] In the 1970s, Vornado began divesting its retail operations. In 1978, the company sold 80 Two Guys locations in California.[3]

In 1980, Interstate Properties Inc., a real estate development company controlled by Steven Roth, acquired an 18% stake in Vornado, since Roth became interested in the company's real estate holdings.[3] In 1981, Interstate Properties took control of the firm after winning a proxy struggle against existing management and closed additional stores, reducing the number of stores in operation to 12.[5][6]

Acquisition of Alexander's (1986–1995)

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In 1986, Interstate Properties and Donald Trump each bought approximately 20% of Alexander's, a failing retailer whose real estate holdings included a store that occupied the entire block between East 58th and 59th streets and Lexington and Third Avenues in Manhattan.[7]

In 1988, they each raised their stakes to 27% of the company, but Trump pledged his interest as collateral for a personal loan from Citicorp and in 1991, Trump was forced to turn over his holdings to Citibank.[8]

In 1992, Roth and Alexander's creditors forced Alexander's into bankruptcy.[9]

Alexander's emerged from bankruptcy in 1993 as a real estate investment trust. That same year, Vornado Inc. was converted into a REIT, Vornado Realty Trust. In 1995, Vornado bought Citicorp's interest in Alexander's.[10]

Vornado Air licensing deal (1989)

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In 1989, the Vornado name was licensed to Vornado Air, LLC, a new company formed to manufacture heating and cooling equipment. Outside of the brand licensing agreement, the Trust has no modern relation to Vornado Air, LLC.[citation needed]

Acquisition of properties from Bernard H. Mendik (1997)

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In April 1997, the company acquired a company owned by Bernard H. Mendik in a $654 million stock transaction that added a large portfolio of office buildings in Manhattan to Vornado's assets. Mendik became co-chairman of Vornado until his resignation in October 1998.[11]

World Trade Center lease (2001)

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On February 15, 2001, the Port Authority announced that Vornado Realty Trust had won the bid for a 99-year lease for the World Trade Center, offering $3.25 billion.[12] Silverstein Properties was outbid by $30 million by Vornado. However, Vornado balked over lease terms and possible tax liabilities.[13] Silverstein signed a lease for the World Trade Center in April 2001,[14] 5 months before the September 11 attacks.

2001–present

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In 2001, the company acquired Charles E. Smith Commercial Realty, owner of a portfolio of assets primarily in Arlington, Virginia, in a $1.58 billion transaction. Robert H. Smith and Robert P. Kogod were added to the board of directors of Vornado.[15]

In 2005, the company bought a 32.5% interest in Toys "R" Us.[16] Toys "R" Us filed bankruptcy in 2018 and the investment was written off.[17][18][19]

In 2013, Steven Roth replaced Michael D. Fascitelli as CEO of Vornado. Fascitelli had been CEO since 2009.[20]

In 2015, the company spun off its interest in Urban Edge Properties, a spinoff consisting of its former retail holdings outside Manhattan, to its shareholders.[21]

In 2017, the company merged its Charles E. Smith Companies subsidiary into the JBG Companies, forming JBG Smith.[22]

References

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  1. ^ a b "Vornado Realty Trust 2021 Form 10-K Annual Report". Securities and Exchange Commission.
  2. ^ Alexander, Dan (October 16, 2020). "Donald Trump Has At Least $1 Billion In Debt, More Than Twice The Amount He Suggested". Forbes.
  3. ^ a b c d Barmash, Isadore (June 13, 1981). "A Change At Troubled Vornado". The New York Times.
  4. ^ Sloane, Leonard (October 10, 1964). "Two Guys Stores Are Expanding". The New York Times.
  5. ^ Barmash, Isadore (November 3, 1981). "Vornado To Increase Store Closings By 18 Units". The New York Times.
  6. ^ Sloan, Allan (June 2, 1992). "Looking Closer At The Odd Bankruptcy Of Alexander's Inc". The Washington Post.
  7. ^ "Trump to Acquire 20% of Alexander's". The New York Times. November 22, 1986.
  8. ^ "Alexander's Jumps On Trump Rumor". The New York Times. May 14, 1991.
  9. ^ "Alexander's Shuts All Its 11 Stores; Plans Liquidation". The New York Times. May 16, 1992.
  10. ^ "Vornado and Affiliate Get Control of Alexander's". The New York Times. March 7, 1995.
  11. ^ Saxon, Wolfgang (May 30, 2001). "Bernard Mendik, 72, Prominent Landlord and Head of Real Estate Industry Board, Dies". The New York Times.
  12. ^ "Vornado wins WTC lease". CNN. Reuters. February 22, 2001.
  13. ^ Bagli, Charles V. (March 17, 2001). "World Trade Center Deal Remains in Doubt". The New York Times.
  14. ^ Bagli, Charles V. (April 27, 2001). "Deal Is Signed To Take Over Trade Center". The New York Times.
  15. ^ Spinner, Jackie (October 20, 2001). "Vornado to Buy Commercial Arm of Smith Realty Giant". The Washington Post.
  16. ^ "Bain Capital, KKR And Vornado Complete Acquisition Of Toys "R" Us, Inc" (Press release). Bain Capital. July 21, 2005 – via Securities and Exchange Commission.
  17. ^ Jones, Charisse (September 19, 2017). "Toys R Us files for bankruptcy". USA Today.
  18. ^ Hals, Tom; Rucinski, Tracy (September 19, 2017). "Toys 'R' Us seeks bankruptcy to survive retail upheaval". Reuters.
  19. ^ Bhattarai, Abha (September 19, 2017). "Toys 'R' Us files for bankruptcy amid struggle to pay down billions in debt". The Washington Post.
  20. ^ "Michael D. Fascitelli to Step Down as Vornado's Chief Executive Officer; Steven Roth, the Company's Chairman, Appointed as Chief Executive Officer" (Press release). Vornado Realty Trust. February 27, 2013 – via Business Wire.
  21. ^ "Vornado Announces Completion of Spin-Off of Urban Edge Properties" (Press release). Vornado Realty Trust. January 15, 2015 – via Business Wire.
  22. ^ "JBG SMITH Properties Announces Completion of Its Spin-Off From Vornado Realty Trust and Its Combination With The JBG Companies" (Press release). Vornado Realty Trust. July 18, 2017 – via PR Newswire.
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  • Business data for Vornado Realty Trust:
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