Vornado Realty Trust (NYSE: VNO) today announced that it has finalized its co-investment with its real estate fund in the recent acquisition of One Park Avenue, a 933,000 square foot office building located on the entire block front on the east side of Park Avenue between 32nd and 33rd Streets. In connection with this transaction, Vornado negotiated a new long term lease with New York University, the building's major tenant, for its NYU Langone Medical Center, expanding their space from 180,000 to 368,000 square feet and increasing the building's occupancy from 80% to 97%.

The purchase price for the 95% interest in the building was approximately $374 million, or $422 per square foot, consisting of $137 million of cash and our 95% share of a new $250 million 5-year mortgage that bears interest at 4.995%. Vornado's aggregate ownership interest in the building including its 25% ownership of the Fund is 46.5%.

Vornado Realty Trust is a fully integrated equity real estate investment trust.

Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.

Vornado Realty Trust
Joseph Macnow, 201-587-1000