Potential buyer materializes for Yonkers Raceway

Votnsdo Realty Trust Inc. a publicly traded real estate investment trust in

Paramus, N.J., is likely to acquire Yonkers Raceway, a real estate source said.

The source, who declined to be identified, said Vornado, which owns 550 and 600 Mamaroneck Ave. in White Plains, has put the properties

John McCarthy, principal of McCarthy O'Callaghan Company Inc. in White Plains, who started marketing the 89-acre racetrack two years ago, declined to either confirm or deny that Vornado was the likely buyer He said no deal has been signed yet.

McCarthy said he has done business with the REIT, but would not say whether he has been talking with it about the raceway.

Steve Roth, chairman of Vornado, and Robert Galterio, general manager of the raceway, did not return calls seeking comment.

Wendi Kopsick of Kekst & Co. in New York City, which handles public relations for Vornado, said: "We have not made any announcements. We do not comment on rumors or speculations."

Ed Sheeran, an assistant to Mayor John Spencer of Yonkers who handles economic development issues for the city, also did not return a call.

Vornado, which owns and manages about 66 million square feet of real estate, was founded more than 35 years ago as a retailing company.

In 1981, it was transformed into a real estate business and has since grown to become an industry leader, with holdings across four business platforms: office, retail, merchandise mart and temperature-controlled logistics.

Vornado bought 550 and 600 Mamaroneck Ave. from Mendick Real Estate L.P in 1998, paying $21.5 million.

Currently, its office portfolio comprises 23 office buildings in the metropolitan area; its retail portfolio consists of 56 shopping center properties, including two malls and one regional mall in the Northeast.

Experience strategy

Vornado has embarked on an aggressive expansion strategy. Since January 1997, it has completed more than $5 billion in real estate acquisitions or investments. It generated $696 million in revenue in 1999.

While the racetrack's asking price has not been disclosed, there have been rumors that owner Tim Rooney turned down an $80 million offer.

McCarthy has denied the rumor, saying no price tag has been put on the site, which is suitable for various uses, including a shopping mall and an entertainment facility." We will let the marketplace decide the price," he said.

McCarthy previously said any possible deal must pass through several phases, including winning tax incentives from the state and the city.

Two years ago, officials of Empire State Development, the state agency responsible for retaining and attracting companies, said the state would look favorably on any project that would create jobs in Westchester,

In addition to providing financial incentives in the form of tax rebates, loans and grants, Empire State can also help companies win speedy approvals for projects by cutting red tape.

McCarthy O'Callaghan was hired in 1997 to market the raceway, which has had financial difficulties for the past few years because of declining attendance.

In 1998, the brokers sent information to 250 potential suitors. They reported receiving 100 queries from potential buyers. Fourteen were considered and a halfdozen semi-finalists were chosen. But none of the proposals came to fruition.

The track opened in 1899, when it was owned by William Clark a copper magnate, and his partner, James Butler, a grocery tycoon. The modern raceway opened in 1950. The half-mile track has been the scene of historic harness horse races.