April 25 (Bloomberg) -- Vornado Realty Trust sold its stake in a site in Boston’s Downtown Crossing district, ending an investment that had been plagued by years of stalled development.
The buyer was Millennium Partners, two people with knowledge of the deal said. The New York-based developer now owns 100 percent of the property, according to the people, who asked not to be identified because the agreement was private.
Millennium is planning to redevelop the former Filene’s department store in Downtown Crossing into offices and retail and build a new, mixed-use tower with about 500 residential units next to it. The company took over the project from Vornado in 2012 after it had stalled for four years, and intends to start construction this year.
Vornado said it received net proceeds of about $45 million from the sale of its 50 percent stake. The deal resulted in a net loss of $2 million, which was recorded as an impairment in the first quarter, according to a statement yesterday from the New York-based real estate investment trust.
The company will probably sell more real estate than it buys following a surge in values, Chairman Steven Roth wrote in his annual letter to investors, filed with the U.S. Securities and Exchange Commission on April 12. Vornado, owner of more than 100 million square feet (9.3 million square meters) of U.S. properties, has sold $2.75 billion of assets since April 2012’s chairman’s letter, Michael Fascitelli, then chief executive officer, said on Feb. 27.
Wendi Kopsick, a Vornado spokeswoman, declined to comment on the deal. A call to Richard Baumert, a partner at Millennium, wasn’t returned.
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