v3.26.1
Related Party Transactions
 6 Months Ended
Jun. 30, 2026
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
Vornado
As of June 30, 2026, Vornado owned 32.4% of our outstanding common stock. We are managed by, and our properties are leased and developed by, Vornado, pursuant to the agreements described below, which expire in March of each year and are automatically renewable.
Management and Development Agreements
We pay Vornado an annual management fee equal to the sum of (i) $2,800,000, (ii) 2% of gross revenue from the Rego Park shopping center, (iii) $0.50 per square foot of the tenant-occupied office and retail space at 731 Lexington Avenue, and (iv) $399,000, escalating at 3% per annum, for managing the common area of 731 Lexington Avenue. Vornado is also entitled to a development fee equal to 6% of development costs, as defined.
Leasing and Other Agreements
Vornado also provides us with leasing services for a fee of 3% of rent for the first ten years of a lease term, 2% of rent for the eleventh through the twentieth year of a lease term, and 1% of rent for the twenty-first through thirtieth year of a lease term, subject to the payment of rents by tenants. In the event third-party real estate brokers are used, the Company is responsible for any third-party lease commissions and Vornado’s fee is one-third of the applicable third-party lease commission.
Vornado is also entitled to a commission upon the sale of any of our assets equal to 3% of gross proceeds, as defined, for asset sales less than $50,000,000 and 1% of gross proceeds, as defined, for asset sales of $50,000,000 or more (the “Sales Commission Agreement”). Pursuant to the Sales Commission Agreement, we paid a $2,355,000 sales commission to Vornado in the second quarter of 2026 related to the sale of our Rego Park I property.
We also have agreements with Building Maintenance Services LLC, a wholly owned subsidiary of Vornado, to supervise (i) cleaning, engineering and security services at our 731 Lexington Avenue property and (ii) security services at our Rego Park shopping center and The Alexander apartment tower. In addition, we have an agreement with a wholly owned subsidiary of Vornado to manage the parking garage at our Rego Park shopping center.
The following is a summary of fees earned by Vornado under the various agreements discussed above.
For the Three Months Ended June 30,For the Six Months Ended June 30,
(Amounts in thousands)2026202520262025
Company management fees$700 $700 $1,400 $1,400 
Development fees79 207 144 626 
Leasing fees492 229 522 242 
Commission on sale of real estate2,355 — 2,355 — 
Property management, cleaning, engineering, parking and security fees2,012 1,464 3,291 2,923 
$5,638 $2,600 $7,712 $5,191 
As of June 30, 2026, the amounts due to Vornado were $492,000 for leasing fees, $473,000 for management, property management, cleaning, engineering and security fees and $79,000 for development fees. As of December 31, 2025, the amounts due to Vornado were $100,000 for leasing fees and $34,000 for development fees.