Vornado Realty Trust has finalized a refi of One Park Ave., a 943,000-square foot Manhattan office building of which it owns 55%. The $525 million interest-only CMBS loan carries a rate of LIBOR plus 1.107% and matures in February 2026. The loan replaces the previous $300 million loan that bore interest at LIBOR plus 1.75% and was scheduled to mature in March 2021. Vornado’s share of the net proceeds was approximately $105 million.
The floating rate loan has an initial two-year term with three, one-year extension options, and requires monthly interest-only payments based on one-month LIBOR, according to Kroll Bond Rating Agency. The loan is secured by the borrower’s fee simple interests in the 20-story Midtown office.
As of January 2021, the property was 97.7% leased to 16 tenants. The five largest tenants include New York University (which contributes 61.4% of total base rent and is taking 67.1% of total square footage); Robert A.M. Stern (9.0%, 7.0%); Equinox One Park Avenue (6.8%, 6.9%); Clarins USA Inc. (5.6%, 4.1%; and Citibank N.A. (4.6%, 1.4%). Together, these five tenants account for 87.4% of total base rent and 86.5% of the total square footage, according to Kroll.