Vornado Realty Trust

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This article is about the realty trust. For the fan manufacturer, see Vornado Air LLC.
Vornado Realty Trust
Public company
Traded as NYSEVNO
S&P 500 Component
Industry Real Estate Investment Trust
Founded 1982
Headquarters New York City, New York
Key people
Steven Roth, Chairman & CEO
Michael J. Franco, Chief Investment Officer[1]
Revenue Increase US$2.502 billion (2015)[1]
Increase US$807.168 million (2015)[1]
Decrease US$679.856 million (2015)[1]
Total assets Decrease US$21.143 billion (2015)[1]
Total equity Decrease US$6.697 billion (2015)[1]
Number of employees
4,089 (2015)[1]
Website www.vno.com

Vornado Realty Trust is a real estate investment trust based in New York City.

History[edit]

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.

Two Guys[edit]

Vornado Realty Trust's origins can be traced back to an early discount store chain called Two Guys, founded in 1946 by brothers Sidney and Herbert Hubschman. In 1959, the company acquired O. A. Sutton Corporation, manufacturers of the Vornado line of electric fans, air conditioners, and dehumidifiers. The merged company was renamed Vornado, Inc. At its retail peak in the early 1970s, Vornado operated 53 Two Guys stores, 65 supermarkets, 240 Fosters Freeze restaurants, and other retail operations.[2]

Vornado began divesting its retail operations, and by the late 1970s owned only 60 Two Guys stores. By the fall of 1979, Interstate Properties Inc., a private partnership engaged in shopping-center development controlled by Steven Roth, had taken a 17% stake in Vornado, as Roth became interested in the company's real estate holdings. The next year Interstate Properties took control of the firm after winning a proxy struggle. He liquidated Two Guys and, by 1985, real estate outstripped merchandising as the chief source of sales.[2]

Alexander's[edit]

In 1986, Interstate Properties and Donald Trump each bought approximately 20% of Alexander's, a failing retailer whose real estate holdings included its flagship store, occupying the entire block between East 58th and 59th streets and Lexington and Third avenues. [3]

In 1988, they each raised their stakes to 27% 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 the bank.[4]

In 1992, Roth and Alexander's creditors forced Alexander's into bankruptcy.[5]

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.[6]

Vornado Air[edit]

In 1989, the Vornado name was licensed to a new company in the Wichita area currently known as Vornado Air, LLC to manufacture heating and cooling equipment. Outside of the brand licensing agreement, the Trust has no relation to Vornado Air, LLC.

World Trade Center[edit]

On February 15, 2001, the Port Authority announced that Vornado Realty Trust had won the bid a 99-year lease for the World Trade Center, offering $3.25 billion.[7] Silverstein Properties was outbid by $30 million by Vornado. However, Vornado balked over lease terms and possible tax liabilities.[8] Silverstein signed a lease for the World Trade Center in April 2001.[9]

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 E. Smith and Robert P. Kogod were added to the board of directors of Vornado.[10]

In 2005, the company bought a 32.5% interest in Toys "R" Us.[11]

In 2013, Steven Roth replaced Michael D. Fascitelli as Vornado's CEO. Fascitelli had been CEO since 2009.[12]

In 2015, the company spun off its interest in Urban Edge Properties to its shareholders. [13]

Current operations[edit]

Vornado owns the following:

Major holdings[edit]

Office buildings[edit]

Manhattan street retail[edit]

Merchandise Mart Properties, Inc. (MMPI)[edit]

References[edit]

External links[edit]