Vornado Realty Trust

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

This article is about the real estate investment trust. For the fan manufacturer, see Vornado Air.
Vornado Realty Trust
Public company
Traded asNYSE: VNO
S&P 500 Index component
ISINUS9290421091 
IndustryReal estate investment trust
PredecessorTwo Guys 
Founded1982 (1982)
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
Revenue $1.924 billion (2019)
$3.334 billion (2019)
Total assets $18.287 billion (2019)
Total equity $7.310 billion (2019)
Number of employees
4,008 (2019)
Websitewww.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

Investments

Notable properties owned by the company include the following:[1]

The company also owns:

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.[2] In 1959, Two Guys acquired O. A. Sutton Corporation, manufacturers of the Vornado line of electric fans, and the company was renamed Vornado Inc.[2]

By 1964, the company operated over 200 stores.[3] In the 1970s, Vornado began divesting its retail operations. In 1978, the company sold 80 Two Guys locations in California.[2]

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.[2] 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.[4][5]

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.[6]

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.[7]

In 1992, Roth and Alexander's creditors forced Alexander's into bankruptcy.[8]

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.[9]

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.

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.[10]

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.[11] Silverstein Properties was outbid by $30 million by Vornado. However, Vornado balked over lease terms and possible tax liabilities.[12] Silverstein signed a lease for the World Trade Center in April 2001,[13] 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.[14]

In 2005, the company bought a 32.5% interest in Toys "R" Us.[15] Toys "R" Us filed bankruptcy in 2018 and the investment was written off.[16][17][18]

In 2013, Steven Roth replaced Michael D. Fascitelli as CEO of Vornado. Fascitelli had been CEO since 2009.[19]

In 2015, the company spun off its interest in Urban Edge Properties to its shareholders.[20]

In 2017, the company merged its Charles E. Smith Companies subsidiary into the JBG Companies, forming JBG Smith.[21]

References
  1. "Vornado Realty Trust 2019 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. BARMASH, ISADORE (June 13, 1981). "A CHANGE AT TROUBLED VORNADO". The New York Times.
  3. SLOANE, LEONARD (October 10, 1964). "Two Guys Stores Are Expanding". The New York Times.
  4. BARMASH, ISADORE (November 3, 1981). "VORNADO TO INCREASE STORE CLOSINGS BY 18 UNITS". The New York Times.
  5. SLOAN, ALLAN (June 2, 1992). "LOOKING CLOSER AT THE ODD BANKRUPTCY OF ALEXANDER'S INC". The Washington Post.
  6. "Trump to Acquire 20% of Alexander's". The New York Times. November 22, 1986.
  7. "Alexander's Jumps On Trump Rumor". The New York Times. May 14, 1991.
  8. "Alexander's Shuts All Its 11 Stores; Plans Liquidation". The New York Times. May 16, 1992.
  9. "Vornado and Affiliate Get Control of Alexander's". The New York Times. March 7, 1995.
  10. SAXON, WOLFGANG (May 30, 2001). "Bernard Mendik, 72, Prominent Landlord and Head of Real Estate Industry Board, Dies". The New York Times.
  11. "Vornado wins WTC lease". CNN. Reuters. February 22, 2001.
  12. BAGLI, CHARLES V. (March 17, 2001). "World Trade Center Deal Remains in Doubt". The New York Times.
  13. BAGLI, CHARLES V. (April 27, 2001). "Deal Is Signed To Take Over Trade Center". The New York Times.
  14. Spinner, Jackie (October 20, 2001). "Vornado to Buy Commercial Arm of Smith Realty Giant". The Washington Post.
  15. "BAIN CAPITAL, KKR AND VORNADO COMPLETE ACQUISITION OF TOYS "R" US, INC" (Press release). Business Wire. July 21, 2005.
  16. Jones, Charisse (September 19, 2017). "Toys R Us files for bankruptcy". USA Today.
  17. Hals, Tom; Rucinski, Tracy (September 19, 2017). "Toys 'R' Us seeks bankruptcy to survive retail upheaval". Reuters.
  18. Bhattarai, Abha (September 19, 2017). "Toys 'R' Us files for bankruptcy amid struggle to pay down billions in debt". The Washington Post.
  19. "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). Business Wire. February 27, 2013.
  20. "Vornado Announces Completion of Spin-Off of Urban Edge Properties" (Press release). Business Wire. January 15, 2015.
  21. "JBG SMITH Properties Announces Completion of Its Spin-Off From Vornado Realty Trust and Its Combination With The JBG Companies" (Press release). PR Newswire. July 18, 2017.
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