Vornado Realty Trust has completed two previously announced sales involving retail centers in California and Pennsylvania for an aggregate price of $263 million.
The Plant, a power center located at Curtner Ave. and Monterey Rd. in San Jose, CA, sold for $203 million. The center totals more than 465,000 square feet of retail and office space on 52 acres in the San Jose Central submarket. The main buildings were constructed between 2006 and 2008, and include small shop space and anchors including Home Depot, Best Buy, Babies R Us, Bath & Body Works, and several casual and quick-service restaurants and outlots.
In a separate transaction, Vornado sold a portion of the Gallery at Market East, located at 901-937 Market St. in Philadelphia, PA for $60 million. The four-story, 853,000-square-foot retail building was built in 1977 on 22 acres in the Market Street East submarket. It is part of the 1.4 million-square-foot shopping center known as The Gallery.
The two sales resulted in net proceeds for the company of approximately $156 million after closing costs and repaying the mortgage on The Plant. According to a company release, the fully integrated equity real estate investment trust is expected to realize net gains of $69 million in the second quarter.
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