NEW YORK CITY-Vornado Realty Trust said Wednesday evening that it had completed a $390-million financing of its retail condominium at 666 Fifth Ave., which it acquired for $707 million this past December from a partnership of the Kushner Cos., Crown Acquisitions and the Carlyle Group. The lender was not disclosed.
The New York City-based office and retail REIT says the 10-year loan on the 666 Fifth retail condo is interest-only at 3.61%. Net proceeds from the financing were approximately $387 million, according to Vornado.
The 114,000 square feet of 666 Fifth retail, leased to Uniqlo, Hollister and Swatch, expanded Vornado’s portfolio of Manhattan street retail to 2.3 million square feet. The office tower’s retail space also includes the 38,750-square-foot former NBA store, which Spanish retailer Inditex bought in March 2011 for a record-setting $324 million.
The Inditex space was not part of the retail acquisition by Vornado, which GlobeSt.com first reported this past July July. In December 2011, Vornado took a 49.5% stake in the office portion of the 41-story 666 Fifth, entering a joint venture with Kushner to recapitalize the property.
Taken together, last December’s Vornado purchase and the Inditex space value 666 Fifth’s retail component at more than $1 billion. That’s nearly double the $525 million that Crown and Carlyle paid for a controlling stake in the retail condo in July 2008.
Last month, GlobeSt.com reported that a Vornado entity known as WPV San Jose LLC sold the Plant shopping center in San Jose, CA to a division of Cole Real Estate Investments for $205 million. Vornado had acquired full ownership in 2010 by purchasing 70% of the center from its equity partners, Westrust Ventures LLC and Pacific Coast Equity Partners.