NEW YORK CITY-A joint venture of SL Green Realty Corp. and Vornado Realty Trust, which already owns debt in Broadway Partners’ 280 Park Ave., reportedly is looking to take an equity stake in the 41-story office property. Crain’s New York Business reported on Monday that a preliminary deal has been reached in which the two REITs would put fresh capital into the property and some of the $400 million in 280 Park debt that the JV currently holds would be converted into equity.
At present, the interest reserves on 280 Park are waning while the property’s vacancy rate is on the rise, according to Crain’s. Broadway Partners and Investcorp. paid approximately $1.2 billion for the property in 2007.
GlobeSt.com reported last month that the two office REITs teamed up for the first time on a 50/50 JV to hold debt on the 1.2-million-square-foot, two-tower asset, located between 48th and 49th streets. In order to make the partnership equal, Vornado paid SL Green $111 million and assumed $15 million of SL Green’s applicable debt. Through a spokesman, SL Green and Broadway Partners declined comment. Click here for the complete Crain’s story.
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