Calling Manhattan “the strongest real estate market in the country,” Vornado Realty Trust chairman and CEO Steven Roth said Tuesday that the company may divest two prominent assets in other cities. The REIT owns the Mart (a/k/a the Merchandise Mart) in Chicago and is majority owner of 555 California St. in San Francisco.
“These two assets may be on the for-sale list for the right deal at the right time,” Roth said on the company’s second-quarter earnings call.
He added, “We think that 555 California is the single best asset in San Francisco. San Francisco is in a recovery phase now which we think is going to be very dramatic.” That could lead to favorable conditions for a sale “at the right price.”
In Manhattan, meanwhile, and especially in the Class A space, “I believe the next few years have the potential to be one of the strongest periods of rental growth we’ve seen in decades,” said Roth.
Pictured: Vornado’s PENN 1 in Midtown Manhattan.
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