BY GUS DELAPORTE

Earlier this week Vornado Realty Trust reported its first quarter results, with funds from operations, a key metric for judging the performance of real estate investment trusts, falling to $201.8 million, or $1.08 per share, from $348.5 million, or $1.82 per share, over the same period last year.

The decline of over 42 percent is attributable in part to the REIT’s investment in J.C. Penney Co. but does not necessarily represent the REIT’s real estate assets, according to analysts.

Vornado reported close to $100 million in quarterly losses from its investment in the struggling retailer, nearly $40 million of which came directly from the sale of shares in the company.

In March, Vornado offloaded 10 million shares, or 43 percent of its position, in J.C. Penney.

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BY AL BARBARINO

Massey Knakal has arranged the $49 million sale of seven-property portfolio spread along a single street in the East Village, The Commercial Observer has learned.

The five and six-story buildings at 118, 120-22, 195, 199, 201 and 203 East 4th Street make up a combined 53,770 square feet across 115 units, with 175 feet of frontage and one retail space (at 195 East 4th).

“Demand to own multifamily properties in the East Village is extremely high as rents continue to surge and vacancy in the neighborhood is below 1 percent,” said Massey Knakal’s John Ciraulo, who exclusively represented the seller with Craig Waggner, James Nelson, Michael DeCheser and Bob Knakal, adding that the “purchaser continued their recent buying spree” in the neighborhood.

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BY BILLY GRAY

The malpractice law firm Douglas & London, P.C. inked a 10-year deal for 14,807 square feet at 59 Maiden Lane, The Commercial Observer has learned.

Brad Gerla and Jeff Sharon of CBRE represented the tenant, which will relocate from 111 John Street this August. A team from Newmark Grubb Knight Frank represented the landlord, AM Trust. Asking rent was $36 per square foot.

The tenant wanted to consolidate space and will relocate to the sixth floor of 59 Maiden Lane from multi-story offices on John Street. Maiden Lane and the surrounding area sustained heavy damages during Superstorm Sandy. But recent activity suggests a solid comeback. Last month, The Commercial Observer wrote about the growing collection of fast casual restaurants at 100 Maiden Lane.

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BY MICHAEL EWING

TerraCRG, the Brooklyn Chamber of Commerce and aptsandlofts.com will be hosting a daylong conference on the transactions and projects influencing the market today in Brooklyn.
2013 Brooklyn Real Estate Summit, Brooklyn Academy of Music, 30 Lafayette Avenue, Brooklyn; contact thebrooklynsummit@terracrg.com for more information.