Vornado Realty Trust has suspended its efforts to sell two office trophy towers, which it co-owns with Trump’s organization.
The real estate investment fund was looking for buyers for its 70 percent stake in the buildings located at 1290 Sixth Avenue in Manhattan and 555 California Street in the financial district of San Francisco. Vornado hoped to sell the property for about $ 5 billion, the Wall Street Journal reported.
If the buildings went at this price, Trump’s 30% stake in the partnership would be valued at about $ 1.5 billion.
However, sources stated that Vornado could not attract buyers at this price, which led the company to stop selling. Potential conflicts of interest associated with concluding an agreement with the incumbent US president could also give foreign buyers – who often acquire valuable trophy features – a second thought.
Vornado is now changing its strategy for real estate.
“We are now focusing more on refinancing both assets,” said Doug Harmon, an investment adviser at Cushman & Wakefield, which led the sales efforts at the Manhattan building. Eastdil Secured LLC worked on a tower in San Francisco.
Trump is said to be the passive owner and has no control over the decision to sell the two buildings. In recent weeks, the company has stopped owns the Trump International Hotel in Washington, DC, potentially let go its headquarters in Seven Springs, Westchester County, New York.
“Trump is an incredible company with a huge cash flow.” We have never been stronger, “the company told the daily.
[WSJ] – Akiko Matsuda