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| CPPIB, Vornado announce JV in Vornado Washington D.C. properties The Canada Pension Plan Investment Board (CPPIB) and Vornado Realty Trust (NYSE: VNO) announced a joint venture transaction in which CPPIB has acquired a 45% common ownership interest in 1299 Pennsylvania Avenue (the Warner Building) and 1101 17th Street NW, two prime office properties in Washington D.C. owned by Vornado. The transaction represents CPPIB's first real estate investment in the Central Business District of Washington, D.C. CPPIB has made an equity investment of $91 million and assumed 45% of the existing mortgage indebtedness secured by the properties in exchange for its 45% common ownership interest in the assets, which have a total implied value of $526 million. Vornado realized a net gain of approximately $54 million on the sale of the Warner Building to be recognized in the fourth quarter. The gain on 1101 17th Street will be recognized when Vornado monetizes its investment. Vornado will retain its 55% ownership interest and continue to manage and lease these properties. 1299 Pennsylvania Avenue NW, known as the Warner Building, is a 13-story, class A office building containing over 600,000 sq. ft., located approximately three blocks east of the White House. The building, considered a one-of-a-kind asset, also includes the historic Warner Theatre, a 1,850-seat theatre that has been restored to its original grandeur. The transaction values this property at $445 million or $737 per square foot. 1101 17th Street NW is a 13 story office building containing over 200,000 sq. ft. that is well leased and well situated on the North East corner of L Street and 17th Street NW in Washington's commercial/business district. The transaction values this property at $81 million or $382 per square foot. write your comments about the article :: © 2010 Construction News :: home page |