In February 2001, Vornado Realty Trust won the WTC lease bid at $3.25 billion, outbidding Silverstein by $30 million. However, Vornado insisted on a shorter 39-year lease (rather than 99 years) to reduce balance sheet debt, and sought assurances against real estate tax liability. The Port Authority considered these demands nonnegotiable. Vornado withdrew in March 2001, and Silverstein won the lease. Note: Bernard Mendik (Silverstein's former partner) had sold his holdings to Vornado in 1997.