Vornado Realty Trust

Short description: American real estate investment trust

Vornado Realty Trust

Type| Public company

Traded as

* NYSE: VNO
* S&P 400 component

Industry| Real estate investment trust
Founded| 1982; 44 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)
Products| Office buildings
Revenue|  US$1.589 billion (2021)

Net income

|  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| www.vno.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. 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.

## Contents

* 1 Investments
* 2 History
* 2.1 Two Guys
* 2.2 Acquisition of Alexander's (1986–1995)
* 2.3 Vornado Air licensing deal (1989)
* 2.4 Acquisition of properties from Bernard H. Mendik (1997)
* 2.5 World Trade Center lease (2001)
* 2.6 2001–present
* 3 References
* 4 External links

## Investments

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

### Two Guys

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 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)

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)

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)

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)

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

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

1. ↑ 1.0 1.1 "Vornado Realty Trust 2021 Form 10-K Annual Report". https://www.sec.gov/ix?doc=/Archives/edgar/data/899689/000089968922000006/vno-20211231.htm.
2. ↑ Alexander, Dan (October 16, 2020). "Donald Trump Has At Least $1 Billion In Debt, More Than Twice The Amount He Suggested". Forbes. https://www.forbes.com/sites/danalexander/2020/10/16/donald-trump-has-at-least-1-billion-in-debt-more-than-twice-the-amount-he-suggested/.
3. ↑ 3.0 3.1 3.2 3.3 Barmash, Isadore (June 13, 1981). "A Change At Troubled Vornado". The New York Times. https://www.nytimes.com/1981/06/13/business/chairman-of-its-executive-committee-a-change-at-troubled-vornado.html.
4. ↑ Sloane, Leonard (October 10, 1964). "Two Guys Stores Are Expanding". The New York Times. https://www.nytimes.com/1964/10/10/two-guys-stores-are-expanding.html.
5. ↑ Barmash, Isadore (November 3, 1981). "Vornado To Increase Store Closings By 18 Units". The New York Times. https://www.nytimes.com/1981/11/03/business/vornado-to-increase-store-closings-by-18-units.html.
6. ↑ Sloan, Allan (June 2, 1992). "Looking Closer At The Odd Bankruptcy Of Alexander's Inc.". The Washington Post. https://www.washingtonpost.com/archive/business/1992/06/02/looking-closer-at-the-odd-bankruptcy-of-alexanders-inc/ab2614c3-4f55-4506-a42a-1eec2ae99c30/.
7. ↑ "Trump to Acquire 20% of Alexander's". The New York Times. November 22, 1986. https://www.nytimes.com/1986/11/22/business/company-news-trump-to-acquire-20-of-alexander-s.html.
8. ↑ "Alexander's Jumps On Trump Rumor". The New York Times. May 14, 1991. https://www.nytimes.com/1991/05/14/business/company-news-alexander-s-jumps-on-trump-rumor.html.
9. ↑ "Alexander's Shuts All Its 11 Stores; Plans Liquidation". The New York Times. May 16, 1992. https://www.nytimes.com/1992/05/16/business/alexander-s-shuts-all-its-11-stores-plans-liquidation.html.
10. ↑ "Vornado and Affiliate Get Control of Alexander's". The New York Times. March 7, 1995. https://www.nytimes.com/1995/03/07/business/company-news-vornado-and-affiliate-get-control-of-alexander-s.html.
11. ↑ Saxon, Wolfgang (May 30, 2001). "Bernard Mendik, 72, Prominent Landlord and Head of Real Estate Industry Board, Dies". The New York Times. https://www.nytimes.com/2001/05/30/nyregion/bernard-mendik-72-prominent-landlord-and-head-of-real-estate-industry-board-dies.html.
12. ↑ "Vornado wins WTC lease". CNN. Reuters. February 22, 2001. http://www.cnn.com/2001/BUSINESS/02/22/vornado.reut/.
13. ↑ Bagli, Charles V. (March 17, 2001). "World Trade Center Deal Remains in Doubt". The New York Times. https://www.nytimes.com/2001/03/17/nyregion/world-trade-center-deal-remains-in-doubt.html.
14. ↑ Bagli, Charles V. (April 27, 2001). "Deal Is Signed To Take Over Trade Center". The New York Times. https://www.nytimes.com/2001/04/27/nyregion/deal-is-signed-to-take-over-trade-center.html.
15. ↑ Spinner, Jackie (October 20, 2001). "Vornado to Buy Commercial Arm of Smith Realty Giant". The Washington Post. https://www.washingtonpost.com/archive/business/2001/10/20/vornado-to-buy-commercial-arm-of-smith-realty-giant/4f88890b-6014-4e44-a270-ce3a935eb23d/.
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. https://www.usatoday.com/story/money/2017/09/19/toys-r-us-files-bankruptcy/678069001.
18. ↑ Hals, Tom; Rucinski, Tracy (September 19, 2017). "Toys 'R' Us seeks bankruptcy to survive retail upheaval". Reuters. https://www.reuters.com/article/us-toys-r-us-bankruptcy-toymakers/toys-r-us-seeks-bankruptcy-to-survive-retail-upheaval-idUSKCN1BT2AV.
19. ↑ Bhattarai, Abha (September 19, 2017). "Toys 'R' Us files for bankruptcy amid struggle to pay down billions in debt". The Washington Post. https://www.washingtonpost.com/news/business/wp/2017/09/19/toys-r-us-files-for-bankruptcy-amid-struggle-to-pay-down-billions-in-debt/.
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. `{{cite press release}}`: External link in ``|via=`` (help)
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.

## External links

* Business data for Vornado Realty Trust:

* Google Finance
* Yahoo! Finance
* Bloomberg
* SEC filings

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