NEW YORK -- Verizon New York Inc. announced today an agreement to sell a condominium interest in its 41-story headquarters building at 1095 Avenue of the Americas to Equity Office (NYSE: EOP), the nation's largest publicly held office building owner and manager. vEOP will purchase for $505 million 1,030,000 square feet, or nearly 80 percent of the office tower, including approximately 30,000 square feet of retail space.

Verizon New York would continue to occupy more than 200,000 square feet of the midtown Manhattan tower. The agreement is subject to approval by the New York Public Service Commission and the attorney general of New York.

Verizon Communications (NYSE:VZ), which currently occupies space in the 1095 building, plans to relocate its corporate headquarters to a company-owned building at 140 West St. in lower Manhattan.

Lee Brathwaite, Verizon vice president for corporate real estate, said the company is selling at a good time to a respected buyer: "Verizon felt that this was a great opportunity for the company to realize a return at a time when midtown property is highly valued. As we considered a purchaser, we wanted to make sure we sold to a first-class operation. Equity Office is considered one of the premier real estate firms in the country, and Verizon has a longstanding relationship with Equity Office."

Verizon currently leases about 400,000 square feet from EOP in 17 Verizon locations corporatewide.

At 1095 Avenue of the Americas, EOP plans to renovate and lease as "Class A" office and retail space the portion of the building it is acquiring.

Verizon intends to relocate its world headquarters to its recently renovated building at 140 West St. The 1926 landmark building, formerly the headquarters for New York Telephone, will ultimately house about 1,500 employees, including the principal offices for Verizon CEO and Chairman Ivan Seidenberg, along with his direct reports. Additionally Verizon’s board offices will be located there, as will the leadership for the company’s domestic telecom unit serving customers in the Northeast.

The company expects to continue to employ about 18,000 employees at various locations in the city’s five boroughs.

Verizon Communications Inc.