NEW YORK CITY-Vornado Realty Trust said Wednesday it has completed a $425-million refinancing of 2 Penn Plaza, its 1.6-million-square-foot office tower at 400 Seventh Ave. The office and retail REIT did not disclose the source of the seven-year loan, which bears interest at Libor plus 2.00% and was swapped for the term of the loan to a fixed rate of 5.13%. Vornado said in a release that it realized net proceeds of about $139 million after repaying the existing loan on the property.

The 2 Penn refi is the second financing is as many weeks for Vornado. Last week, the company said it had completed a $150-million financing for the previously unencumbered 2121 Crystal Dr., a 506,000-square-foot office property in Arlington, VA.

Built in 1968, the 32-story 2 Penn sits atop Madison Square Garden and Penn Station across the street from the 2.6-million-square-foot 1 Penn Plaza. Major office tenants include the McGraw-Hill Cos., Information Builders and EMC Corp., along with the Garden’s administrative offices. This past summer, Vornado won New York City Council approval for rezoning to build a proposed 15 Penn Plaza, an office tower across Seventh Avenue from 1 and 2 Penn that would rival the nearby Empire State Building in height and square footage.

In January, Vornado sold two of its office assets in the nation’s capital, 1140 Connecticut Ave. and 1227 25th St., for a combined $126 million. The buyer in both cases was Washington Real Estate Investment Trust. WRIT said in January that it funded both purchases, which total 319,000 square feet, from available cash and its line of credit.