NEW YORK CITY-Vornado Realty Trust on Tuesday said it had completed a lease extension with Macy's Inc., its largest tenant at 11 Penn Plaza, for the 646,000 square feet of office space it occupies there. The extended lease runs through 2035. Lease terms were not disclosed.
Originally built in 1923 and extensively renovated in the 1980s, 11 Penn represents about 1.1 million square foot of the nine million square feet of office, retail and hotel space that Vornado owns in the Penn Plaza district. In early 2012, Vornado announced that it had refinanced the 23-story 11 Penn for $330 million.
The REIT's seven-year loan on 11 Penn came from HSBC Holdings PLC, according to data from Real Capital Analytics. Vornado realized net proceeds of approximately $126 million after repaying the existing loan on the property and closing costs.
Separately, the Cincinnati-based Macy's on Tuesday reported that the 2012 full-year results for the 12 months ended Feb. 2 marked its fourth consecutive year of double-digit growth in earnings per share. “Going into 2013, our team is moving ahead with new plans and actions to sharpen our approach to localized merchandise assortments and marketing, which we continue to believe is Macy's sustainable competitive advantage,” Terry J. Lundgren, chairman, president and CEO of Macy's, says in a statement.
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