NEW YORK CITY—A subsidiary of Vornado Realty Trust has completed the $580-million refinancing of its 1.1-million-square-foot mixed-use Manhattan Mall property here with U.S. Bank.
The transaction with Vornado on the property at 100 W. 33rd St. was reported by Minneapolis-based U.S. Bank, which served as lead administrative agent for the deal along with Landesbank Baden-Wurttemberg and DekaBank, who served as co-leads and syndication agents.
Vornado reported the loan is interest only at LIBOR + 1.65%, and matures in July 2020. The company realized net proceeds of approximately $242 million on the refinancing transaction.
Originally built in 1910 as a flagship department store, the property spans the entire Sixth Avenue block between 32nd and 33rd Streets in Manhattan. Its 851,000 square feet of office space is anchored by global advertising agency FCB. Its 256,000 square feet of retail space is Manhattan's only mall and is anchored by JCPenney. The building is located just a block from Madison Square Garden, Penn Station and within walking distance of the Empire State Building.
“We're pleased to partner with a subsidiary of Vornado, a premier real estate firm with a demonstrated expertise across a wide range of asset classes and submarkets in New York City,” says Dave Heller, senior vice president in commercial real estate for U.S. Bank.
Earlier this month Vornado acquired an office building on Eleventh Avenue in Manhattan and several other assets from the City of New York. In addition, the company reported better than expected second quarter earnings.
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