Vornado Realty Trust agreed to sell its 49.5% stake in the 666 Fifth Ave. office condominium in Manhattan, N.Y., for expected net proceeds of $120 million in a conditional deal expected to close in the third quarter.
The New York City office landlord, which also owns retail assets, is selling the stake to its joint venture partner, Kushner Cos., for an estimated financial statement gain of $134 million and a projected tax gain of $244 million.
Previous reports indicated that Brookfield Property Partners LP would provide funding to Kushner, which has struggled to service its debt on the 41-story tower and is controlled by the family of White House adviser Jared Kushner.
The existing mortgage loan on the building will also be repaid, with Vornado receiving roughly $58 million in net proceeds for its share.
Vornado will keep its stake in the property's retail portion, which covers the Uniqlo, Tissot and Hollister stores with some frontage on Fifth Avenue at 53rd St.
