Vornado Completes Master Lease with New York University for 770 Broadway
NEW YORK, May 05, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that it has completed a master lease with New York University ("NYU") to lease 1,076,000 square feet at 770 Broadway, on an "as is", triple net basis for a 70-year lease term. Under the terms of the master lease, a rental agreement under Section 467 of the Internal Revenue Code, NYU made a prepaid lease payment to Vornado of $935 million and will also make annual lease payments to Vornado of approximately $9.3 million during the lease term. NYU has an option to purchase the leased premises in both 2055 and at the end of the lease term in 2095. NYU will assume the existing office leases and related tenant income at the property.
Vornado used a portion of the prepaid lease payment to repay the $700 million mortgage loan which previously encumbered the property.
Vornado will retain the 92,000 square feet retail condominium leased to Wegmans.
Vornado Realty Trust is a fully-integrated equity real estate investment trust.
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Thomas J. Sanelli
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