Vornado Realty Trust
Company type | Public |
---|---|
Industry | Real estate investment trust |
Founded | 1982Maryland, U.S. | in
Headquarters | , U.S. |
Key people | Steven Roth (chairman & CEO) Michael J. Franco (CIO) Joseph Macnow (CFO) |
Products | Office buildings |
Revenue | US$1.589 billion (2021) |
US$175 million (2021) | |
Total assets | US$17.266 billion (2021) |
Total equity | US$6.515 billion (2021) |
Number of employees | 3,224 (2021) |
Website | vno |
Footnotes / references [1] |
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
[edit]Notable properties owned by the company include:[1]
- New York Marriott Marquis (Retail & signage)
- 1540 Broadway (Retail & signage)
- Manufacturers Trust Company Building (510 Fifth Avenue) (Retail)
- 660 Fifth Avenue (Retail)
- 770 Broadway
- 888 Seventh Avenue
- Crowne Plaza Times Square Manhattan (Retail & office)
- Fuller Building
- Penn 1
- The future site of 15 Penn Plaza
- Rego Center
The company also owns:
- 70% of 555 California Street in San Francisco, California (30% is owned by affiliates of Donald Trump)
- 70% of 1290 Avenue of the Americas in New York City (30% is owned by Donald Trump)[2]
- Merchandise Mart in Chicago, Illinois
- 32.4% of Alexander's, which owns 731 Lexington Avenue
History
[edit]Two Guys
[edit]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)
[edit]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)
[edit]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)
[edit]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)
[edit]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
[edit]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
[edit]- ^ a b "Vornado Realty Trust 2021 Form 10-K Annual Report". Securities and Exchange Commission.
- ^ Alexander, Dan (October 16, 2020). "Donald Trump Has At Least $1 Billion In Debt, More Than Twice The Amount He Suggested". Forbes.
- ^ a b c d Barmash, Isadore (June 13, 1981). "A Change At Troubled Vornado". The New York Times.
- ^ Sloane, Leonard (October 10, 1964). "Two Guys Stores Are Expanding". The New York Times.
- ^ Barmash, Isadore (November 3, 1981). "Vornado To Increase Store Closings By 18 Units". The New York Times.
- ^ Sloan, Allan (June 2, 1992). "Looking Closer At The Odd Bankruptcy Of Alexander's Inc". The Washington Post.
- ^ "Trump to Acquire 20% of Alexander's". The New York Times. November 22, 1986.
- ^ "Alexander's Jumps On Trump Rumor". The New York Times. May 14, 1991.
- ^ "Alexander's Shuts All Its 11 Stores; Plans Liquidation". The New York Times. May 16, 1992.
- ^ "Vornado and Affiliate Get Control of Alexander's". The New York Times. March 7, 1995.
- ^ Saxon, Wolfgang (May 30, 2001). "Bernard Mendik, 72, Prominent Landlord and Head of Real Estate Industry Board, Dies". The New York Times.
- ^ "Vornado wins WTC lease". CNN. Reuters. February 22, 2001.
- ^ Bagli, Charles V. (March 17, 2001). "World Trade Center Deal Remains in Doubt". The New York Times.
- ^ Bagli, Charles V. (April 27, 2001). "Deal Is Signed To Take Over Trade Center". The New York Times.
- ^ Spinner, Jackie (October 20, 2001). "Vornado to Buy Commercial Arm of Smith Realty Giant". The Washington Post.
- ^ "Bain Capital, KKR And Vornado Complete Acquisition Of Toys "R" Us, Inc" (Press release). Bain Capital. July 21, 2005 – via Securities and Exchange Commission.
- ^ Jones, Charisse (September 19, 2017). "Toys R Us files for bankruptcy". USA Today.
- ^ Hals, Tom; Rucinski, Tracy (September 19, 2017). "Toys 'R' Us seeks bankruptcy to survive retail upheaval". Reuters.
- ^ Bhattarai, Abha (September 19, 2017). "Toys 'R' Us files for bankruptcy amid struggle to pay down billions in debt". The Washington Post.
- ^ "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.
- ^ "Vornado Announces Completion of Spin-Off of Urban Edge Properties" (Press release). Vornado Realty Trust. January 15, 2015 – via Business Wire.
- ^ "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.
External links
[edit]- Business data for Vornado Realty Trust:
- 1982 establishments in New York (state)
- Companies based in New York City
- Companies listed on the New York Stock Exchange
- Financial services companies established in 1982
- Property management companies
- Real estate companies established in 1982
- Real estate investment trusts of the United States
- Roth family
- Companies in the S&P 400