A retail joint venture majority controlled by Vornado Realty Trust has secured a $450 million loan to refinance its 1535 Broadway property, also known as Marriott Marquis. The terms include 6.90 percent fixed rate, with a maturity date set for May 2030.
It's unclear who the lender was, but Vornado said that $407 million of the funding is being used in part to redeem the company's preferred equity in the JV.
The REIT owns 52 percent of the JV. The breakdown of the other minority stakeholder or equity partners is unclear, but Vornado did strike a deal with Host Hotels & Resorts, Inc. to redevelop the asset in the summer of 2012. The renovation included expanding existing retail space and adding a 330-foot-wide 4K LED screen on the sixth story of the building, which, according to the developer, is the "world's largest" of this kind.
Recommended For You
Some major brands, including T-Mobile, Swatch, Levi's, and Sephora, have leased space at 1535 Broadway. The Times Square asset takes up the entire block of 45th and 46th Street on Broadway.
Vornado's refinancing comes a month after Bloomberg reported that the company was close to inking a lease deal with Dutch-based Universal Music Group NV to take 300,000 square feet at its PENN 2 office tower in the Penn District of Manhattan. Steven Roth, Vornado's CEO, predicted in a fourth-quarter earnings call that its PENN 1 and PENN 2 office properties would be 80 percent leased by the end of the year. In total, Vornado operates nearly 20 million square feet of office assets in Manhattan.
For retail, Manhattan's prime market, which includes Times Square, saw availability drop to 14.6 percent in the first quarter, according to a recent report from JLL. That's the lowest level on the CRE firm's record, which dates back to the third quarter of 2017. However, rents in Times Square did drop significantly, by nine percent, whereas prime Manhattan, as a whole, saw a 7.4 percent increase.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
