Vornado’s ‘hoarding’ its cash
Vornado Realty Trust has a $2.8 billion cash war chest readied to pounce on real estate deals. But like everyone else, they need to find places to park the money until the bid and the ask meet in a comfortable spot.
Vornado is “hoarding” its money in CD’s, Michael Fascitelli, president and CEO of Vornado, told The Post after speaking at an event last week. “Getting .25 percent. Everything is in very safe investments.”
The company just hired someone to try to get better returns, he added.
During a long discussion of past and current markets at the event hosted by the trade pub Real Estate Bisnow, Fascitelli said of his New York Stock Exchange listed company, “What we need is to find a great acquisition and make a boatload of money.”
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UBS may have a buyer for its 49 percent non-controlling stake in 299 Park Avenue, which Post colleague Steve Cuozzo first reported was on the market through Darcy Stacom and Bill Shanahan of CB Richard Ellis.
Insiders say an unnamed Jewish banking family may have snared the investment. The Fisher family, which owns the other 51 percent, appears to be passing on their option to match all comers.
Fisher Bros. developed the 1.4 million-foot building, which is half leased by UBS. The Swiss bank also provided a long-term mortgage. The Fishers own the ground and control the property through two separate ground leases that expire Oct. 1, 2040.
Pricing for the interest in the building was targeted at $600 a foot, so any buyer would have a 7 percent return — although foreigners have been asking city brokers for 8 percent on investments. CBRE did not comment.
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The Bess family’s Upper West Side Food Palace is moving and expanding.
The specialty store, which focuses on Russian items like caviar but carries a full line of international and prepared treats, signed a lease this month to move to 4451 and 4455 Broadway, between 192nd Street and Fairview Avenue.
The 1,200-foot spread housed two small stores and includes a large basement. The asking rent was $6,000 a month and translates to $60 a foot.
The current store, at 4407 Broadway, is less than 1,000 feet.
“They expect to open for the holidays,” said Howard Aaron of Square Foot Realty who worked for the Bess family. His colleague, Aaron Gavios, marketed the empty stores for the owner, Vantage Properties. Mary Carlisle Gambill worked in-house for Vantage.
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French men’s shop Zilli, which opened in August in the Four Seasons Hotel, has found a showroom and offices nearby.
The store, which carries high-end clothing as well as special accessories like kangaroo skin bags and briefcases, signed a deal for 5,050 feet on the 4th floor of 595 Madison Ave., on the northeast corner of 57th Street.
Zilli’s five-year deal was negotiated through Danielle Zimbaro and David Berke of Cushman & Wakefield. The building, owned by Vornado, was represented in-house by Ronald LoRusso.