Vornado Buys Stake in Iconic CBS Studio Building in NYC

Legacy Property, Fresh Investment

Vornado Realty Trust has doubled down on one of Manhattan’s highest-profile office corridors, as reported by CoStar News. In a recent transaction, Vornado took a 49% stake in both the 1.2M SF Park Avenue Plaza—and, notably, the next-door 49 E. 52nd St. building, also known as the former CBS Studio Building. Previously, recording legends from Frank Sinatra to Barbra Streisand made music on these premises, capping a century’s worth of evolving use. The deal, completed in June, positions Vornado as co-owner alongside Fisher Brothers, who retain the majority share.

The two properties are strategically located just off Park Avenue and in close proximity to Vornado’s planned 350 Park Avenue tower development. This pairing enhances Vornado’s influence in Midtown East, while deepening ties with one of New York’s longest-standing real estate families.

A Studio’s Storied Past

Built in 1908 as a guest house for the Vanderbilt family and designed by Warren & Wetmore (architects of Grand Central Terminal), the seven-story 49 E. 52nd has morphed through eras. CBS acquired it in 1939, transforming it into a cutting-edge radio and then recording studio—a reputation evidenced by a 1940 Architectural Forum write-up and subsequent residency by Columbia Records.

After CBS moved operations to West 57th Street in the 1960s, the building continued to host high-profile artists. Fisher Brothers purchased the 60,000 SF asset in 1995 and have since restored its original facade, added a separate office entry, and marketed its technical capabilities to today’s tenants. The building’s ground floors are occupied by a Duane Reade store, anchoring it to street-level retail activity.

The Details

The June deal saw Vornado acquire a 49% interest in both Park Avenue Plaza and 49 E. 52nd from Closer Properties, per a Fisher Brothers spokesperson quoted by CoStar News. The transaction values the 45-story Park Avenue Plaza at $1.1B in gross asset value, though Vornado declined to discuss the CBS Studio Building’s specific valuation.

Fisher Brothers remains majority owner on both assets—a strategic alignment, as Vornado and Fisher Brothers deepen their collaboration on this stretch of Midtown. Together, these buildings represent prime office and mixed-use real estate, with trophy status bolstered by their architectural pedigree and track record of institutional tenancy.

Midtown Trophy Asset Demand Endures

While Midtown office fundamentals remain challenged—CBRE’s Q2 2026 Manhattan report showed office vacancy at 19.6%—owners with institutional-quality assets on prime corridors continue to command investor attention. That confidence aligns with Manhattan’s broader sales recovery, as high-value transactions drive renewed investment activity across the market. Vornado’s partnership with Fisher Brothers parallels other institutional bets on Park Avenue’s upper-tier product, even as older commodity office stock faces distress or repurposing pressure. For Vornado, which is also spearheading the proposed 350 Park Avenue development across the street with Citadel and Rudin, clustering assets not only supports its repositioning play but may also unlock synergies in leasing, branding, and neighborhood influence.

The addition of the historic CBS Studio Building—with its blend of unique history, Class A specs following multiple modernizations, and active retail tenancy—enhances Vornado’s ability to offer bespoke space to media, tech, and finance tenants. The move comes as trophy renovation and adaptive reuse outpace speculative ground-up office work across Manhattan, especially for buildings with location and story as compelling as 49 E. 52nd. Other corridors may lag, but the core Park Avenue blocks remain a battleground for marquee tenants and well-capitalized landlords.

What’s Next

With its expanded stake in Midtown’s most recognizable corridor, Vornado positions itself to influence both leasing strategy and future development. The proximity of the former CBS Studio Building to the proposed 1.85M SF 350 Park Avenue office tower creates opportunities for cross-marketing and placemaking.

Fisher Brothers and Vornado will likely leverage the history and renovated features of 49 E. 52nd to attract tenants seeking a blend of prestige and functionality. As trophy assets continue to outperform, further capital investment and creative repositioning in Midtown’s core may follow—though the gap between haves and have-nots in Manhattan’s office market is only set to widen.