Vornado Makes a $142 Million Dollar Move in LIC

By Konrad Putzier of REW

Vornado is dishing out $142 million for the 437,000 s/f Center Building in Long Island City.

According to a press statement released today (Tuesday), the REIT is in contract to buy the office building from a joint venture between asset manager Perella Weinberg Partners and real estate investment firm Madison Marquette.

The purchase price includes a $62 million mortgage on the property. Ackman-Ziff, a real estate advisory firm, advised the sellers on the transaction, which Vornado expects to close in the first quarter of 2015.

The Center Building

Perella Weinberg and Marquette had bought the eight-story building at 33-00 Northern Boulevard for $84.5 million in late 2012.

The Center Building sale isn’t the first major office deal in Long Island City this year. In August, investment firm Savanna bought the 1.5 million s/f, 51-story office tower One Court Square from a partnership led by David Werner for an undisclosed amount. The two deals alone will multiply the office transaction dollar volume for Queens as a whole.

In the first half of 2014, nine office deals closed across the borough for a total of $76.1 million, according to brokerage and research firm Ariel Property Advisors. The entire year 2013 saw 25 office deals in Queens for a combined $91.9 million.