Vornado Realty Trust sold its stake in 666 Fifth Avenue back to its building partner, Kushner Companies.
According to a Vornado announcement on June 1, the real estate investment trust entered into an agreement to sell the 49.5 percent interests of the 41-story building in Midtown back to Kushner Companies.
Vornado added that it would make $120 million in net proceeds and would continue to own the building’s retail space that currently includes Uniqlo, Tissot and Hollister.
The existing mortgage loan on the property will also be repaid, according to Vornado, who will receive approximately $58 million from the loan refinancing.
The building has faced occupancy and debt hardships and there were once plans to demolish the building for a larger skyscraper.
Kushner Companies bought 666 Fifth Avenue in 2007 for a record-breaking $1.8 billion from Tishman Speyer Properties.
They brought Vornado on as a partner in 2011 as the company worked ti restructure the building’s major debt. Vornado paid $80 million and the assumption of half the property’s $1.2 billion mortgage.
In a statement, Vornado said the contract for this sale back was conditional and that “there can be no assurance that this transaction will be completed.”
Kushner Companies is also reportedly in talks with Brookfield Property Partners, which was expected to take over Vornado’s stake in the building, according to recent media reports.
Kushner Companies declined to comment to press inquiries.