comes three years after the prior one.
NEW YORK CITY-Vornado Realty Trust said Wednesday it had completed a refinancing on 4 Union Square South, a 206,000-square-foot retail property it developed and owns. The seven-year loan for $120 million bears interest at Libor plus 2.15% and amortizes on a 30-year schedule beginning in the third year, according to a release from the REIT. The lender was not disclosed; the release states that Vornado realized net proceeds of $42 million after repaying the existing loan.
Vornado previously refinanced the property for $75 million in April 2009, according to SEC filings. It was scheduled to mature this past April, with two one-year extensions. Previously, the property, anchored by Whole Foods Market, was unencumbered. Other tenants there include DSW Shoe Warehouse, Forever 21, Burlington Coat Factory and Jamba Juice.
The refi on 4 Union Square South comes a little more than a week after Vornado announced one for $950 million on 1290 Ave. of the Americas, the 2.1-million-square-foot office property for which the REIT has a 70% controlling interest in the ownership partnership. Last month, Vornado sold a pair of local shopping malls—Kings Plaza in Brooklyn and Green Acres Mall in Valley Stream, just east of the Queens/Nassau County border—to Santa Monica, CA-based retail REIT Macerich Cos. for a combined $1.25 billion.
In its semiannual retail report issued earlier this week, the Real Estate Board of New York found that asking rents for ground-floor space in the Flatiron District, which includes Union Square, have posted some of the best increases in Manhattan. Rents for ground-floor space along Broadway between 14th and 23rd streets increased 19% year-over-year to $273 per square foot, while along Fifth Avenue between 14th and 23rd the yearly increase was 25% to $350.