Vornado Seeking Buyer for California’s Beverly ConnectionNeil Callanan, Nadja Brandt and Sharon Smyth
Vornado Realty Trust, the owner of 100 million square feet of U.S. real estate, put a shopping mall near Beverly Hills, California, on the market as part of a plan to sell assets from its portfolio.
Space at the 335,500-square-foot (31,100-square-meter) Beverly Connection is leased to value-oriented retailers including TJ Maxx, Target and Nordstrom Rack, according to a marketing document sent by broker Eastdil Secured LLC to potential buyers. Wendi Kopsick, a spokeswoman for Vornado with Kekst & Co., and Saju Chacko, an Eastdil vice president, declined to comment on the plans for Beverly Connection.
Vornado plans to sell more real estate than it acquires following a surge in values, Chief Executive Officer Steven Roth has said. The New York-based real estate investment trust has sold such assets as the Kings Plaza shopping center in New York’s Brooklyn borough, for $751 million; the Green Acres Mall in Valley Stream, New York, for $500 million; and its stake in LNR Property LLC, the biggest manager of troubled U.S. commercial mortgages, for proceeds of $241 million.
Beverly Connection is “not an asset that we intend to own for next year,” Roth said in a Nov. 5 call with analysts.
The retail center, built in 1948 on a 9.8-acre (4-hectare) site and renovated three times since, is 98 percent leased including pending deals, according to the marketing document. Tenants include apparel chains Marshalls and Old Navy and drugstore CVS. The property is across the street from high-end shopping mall Beverly Center.
Beverly Connection may sell for at least $250 million, said Carl Muhlstein, a Los Angeles-based managing director at brokerage Jones Lang LaSalle Inc. who isn’t involved in the marketing of the property.
“They’ve done a very good job positioning that space and bringing in new off-price tenants, which is a great complement to other regional high-end shopping centers,” Muhlstein said. “The economic engines like Cedars-Sinai hospital and the design industry in that area are doing great and the population density is immense.”