NEW YORK CITY-Fully integrated REIT Vornado Realty Trust, based in Paramus, NJ, has been very busy of late. The company completed a $300-million refinancing of its Two Penn Plaza. The loan on the 1.5-million sf office bears 4.97% interest and matures in February 2011. According to Vornado officials, the company realized net proceeds of $147 million after repaying an existing $151 million loan as well as the closing costs.

Vornado also acquired the 165,000-sf Forest Plaza Shopping Center on Staten Island for $32.5 million. The purchase, which included $18.5 million in debt, was funded as part of a Section 1031 tax-free “like-kind” exchange using the remaining portion of the proceeds from the sale of the company’s Two Park Ave. property last year.

And, as reported last week, AmeriCold Realty Trust, the REIT’s joint venture with Fort Worth-based Crescent Real Estate Equties Co., completed a $254.4 million mortgage financing with Morgan Stanley. This mortgage affects 21 owned and seven leased warehouses for the JV, which is owned 60% by Vornado and 40% by Crescent. The loan matures in April 2006 with three one-year extension options. Net proceeds are expected to be $225 million after the repayment of $12.9 million of existing mortgages. It is expected that $135 million will be distributed to Vornado and $90 million will go to Crescent.

Earlier, Vornado sold its 75% interest in Palisades, a residential tower in Fort Lee, NJ for $222.5 million. From that sale, the company expects to gain approximately $70 million.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.