Located in Pentagon City, VA, River House is a 1,670-unit,three-building complex whose refinancing--along with the proceedsfrom a land sale scheduled to close this year--will registerVornado's total investment in the H Street Building subsidiary at$409 million. Of that figure, $78 million is cash, and theremainder, debt.


Vornado declined to comment on the refinancing. However,according to its public statements, the firm has been very activein the debt and equity markets lately; last month it landedfinancing for three properties in the District and refinanced its1.8-million-sf Green Acres RegionalMallin Long Island for $335 million. That interest-onlyloan has a rate of Libor plus 1.40% and is scheduled to mature inFebruary 2011, with two one-year extension options. After repayingthe existing loan and closing costs, the company realized netproceeds of approximately $193 million.


Vornado also procured a $150-million loan for its recentlyredeveloped office property at 2101 L St.; a $104-millionconstruction loan for its residential development project at1229-1231 25th St. in the West End part of the District and; a$87-million construction loan for its residential development at220 20th St., formerly Crystal Plaza Two.Refi borrowers withspecific criteria and deal characteristics are finding therefinance marketto be cautiously favorable right now, asGlobeSt.com recently reported. Speaking generally and not of thespecific Vornado transaction, Richard Swartz of Cushman &Wakefield Sonnenblick tells GlobeSt.com that if a deal's LTV is lowenough--at a 60% LTV or less--"this is probably a good time torefinance because the rates are low." Anything higher--anddefinitely LTVs that breach the 75% mark--borrowers will be facinghigher spreads or will have to bring in a more expensive mezzlayer, he adds.

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