Vornado acquired almost all of its 33% interest in Alexander's in 1995. Alexander's and its stock performance may be the best kept secret in REITland.(5) Here is
|
|
a chart showing Alexander's total return (it has paid no dividends) as compared to the RMS index for periods ending December 31, 2006:
|
I must say, I was surprised at how long it took the
market to recognize the extraordinary values we were creating in Alexander's, at Paramus, Kings Plaza and
731 Lexington Avenue. Alexander's stock did not respond to the Bloomberg, LP lease signing, groundbreaking,
steel erection, topping out, etc., but only started to rise when Bloomberg, LP actually began move-ins and
rent commencement.
Rego Park II will celebrate its formal groundbreaking on May 14th. This 600,000 square foot multilevel retail complex already has as committed tenants Century 21 (135,000 square feet on level 3), Home Depot (135,000 square feet on lower level 1), and Kohl's (134,000 square feet on level 2). A 450 unit residential tower is also being considered. Alexander's Kings Plaza shopping center is getting a new Lowe's Home Improvement Warehouse (114,000 square feet) to be built and owned by the tenant on land ground leased from Alexander's. And the 177,000
(5) I find Alexander's to be an anomaly, selling at a discount to NAV with its big cash horde and best asset quality, pound for pound, in the land. |
|
square foot, four-level Flushing store, which has been vacant for eight years, will finally be tenanted.
Stephen Mann will not be standing for reelection to the Alexander's Board. Steve Mann joined Alexander's Board in 1980 as a nominee of and advisor to a faction of the founding Farkas family. He served as Chairman of the Board from 1994 to 2004. In recent years he has had the distinction of being Alexander's sole employee. A story - years ago, I found myself at dinner with Steve and
James O. Friedman, President of Dartmouth College, an academic giant and a mentor to me. I had no idea that Steve and Jim knew each other. During dinner Jim discreetly leaned over and told me that he and Steve were classmates at Yale Law School and it was Steve who was the ranking scholar in their class and President of the Yale Law Review. Such is the smarts of our friend Stephen Mann. All of us applaud his 27 years of service.
|
