Vornado Realty Trust has entered into an agreement to sell the Green Acres Mall, located in Valley Stream on Long Island in N.Y. to The Macerich Company for $500 million. Net proceeds from the sale will be approximately $185 million after repaying the existing loan and closing costs.
The financial statement gain will be approximately $195 million. The tax gain will be approximately $304 million, which is expected to be deferred as part of a like-kind exchange.
The sale is expected to be completed in the first quarter of 2013.
Further, Vornado will realize a financial statement gain of approximately $181 million and a tax gain of approximately $202 million from the sale of the Kings Plaza Mall, located in Brooklyn, N.Y. This mall, which is owned by Alexanderâ€™s, Vornadoâ€™s 32.4 percent affiliate, is being sold to The Macerich Company for $751 million. Vornadoâ€™s $202 million tax gain is expected to be paid out to shareholders as a special long-term capital gain dividend. This sale is expected to be completed in the fourth quarter.