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 Alexander’s, Vornado’s 32.4 percent affiliate, is being sold to The Macerich Company for $751 million. Vornado’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.