Vornado Realty Trust said Monday it had agreed to purchase the 623 Fifth Ave. office condominium, a 36-story, 382,500-square-foot building situated above the flagship Saks Fifth Avenue department store, for $218 million. Crain’s New York Business reported that the sale by developer Charles Cohen, who last year considered a residential conversion of the office condo, was for less than half the property’s assigned value.
The building is currently 75% vacant. Its new owner intends to “completely reposition and redevelop it into a premier, best-in-class, Class A boutique office building,” Vornado said in a statement. “The fully transformed 623 Fifth Ave. building will complement Vornado’s nearby Plaza District and Park Avenue holdings of 280 Park Ave., 350 Park Ave., 595 Madison Ave., 640 Fifth Ave., 689 Fifth Ave. and 1290 Ave. of the Americas.”
Vornado expects to close the acquisition in September 2025 and complete the redevelopment for delivery to tenants in 2027.
Read More: Vornado to Acquire Office Condo Above Saks Fifth Avenue Flagship
