(To read more on the debt and equity markets, click here.)

HIGH POINT, NC-Vornado Realty Trust has completed the $195-million refinancing of High Point Complex. The transaction carries an interest rate of 6.1% and matures in August 2016.

As a result of the financing, Vornado realized net proceeds of approximately $83.8 million after repaying the existing loans on the property and the closing costs, including a $9-million defeasance cost. That cost will be recognized as an expense in the third quarter, according to a company statement.

High Point Complex consists of slightly more than two million sf of permanent and temporary showroom space in five buildings. The Paramus, NJ-based REIT closed on the purchase of the complex in December 1998. At the time, it consisted of 1.05 million sf of space. The deal carried a $97-million price tag, including $46 million in debt and $51 million in operating partnership units plus 6.5% preferred operating partnership units convertible at $43.74 per unit, a spokeswoman for the company tells GlobeSt.com.

The complex is managed by Merchandise Mart Properties, Inc., which Vornado acquired as part of the Kennedy Family portfolio in April 1998, according to GlobeSt.com research. Vornado paid $630 million for the Kennedy Family portfolio, which included office, retail and showroom space totaling approximately 5.3 million sf.

High Point is known as the home furniture capital of the world. It is home to the International Home Furnishings Market, which brings more than 70,000 people here every six months, according to the High Point Market website. All total, the High Point Market boasts 188 buildings, 12 million sf of showroom space and 2,500 exhibitors.

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?


NOT FOR REPRINT

© 2024 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.

 

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
 

GlobeSt

Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

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