News of the sale came out of the company’s Paramus office, where it has significant operations.
According to the announcement, the sale, subject to customary closing conditions, will result in net proceeds of approximately $146 million, after repaying existing debt and closing costs. The financial statement gain will be approximately $128 million.
The building is located at 48th to 49th Streets and First Avenue to F.D.R Drive. According to the Vornado website, Citibank is currently a tenant
The tax gain will be approximately $166 million, deferred in a like-kind exchange as part of Vornado’s previously announced acquisition of 655 Fifth Avenue, the company said in a statement.
A like-kind exchange allows a company to defer current tax liability on the sale of an asset by offsetting proceeds with another expenditure.
Darcy Stacom and William M. Shanahan of CBRE New York brokered the deal, according to a spokesman for CBRE. Stacom is head of investment properties at that office and she and Shanahan have combined experience of nearly 60 years in real estate, according to the company’s website.
The deal is expected to close in the fourth quarter of 2013.
This story may be updated with additional information.