December 3, 2019
The joint venture that owns 650 Madison Ave., an office and retail property that houses the headquarters of Polo Ralph Lauren, has refinanced the 600,000-square-foot asset for $800 million. The 10-year, interest-only loan carries a fixed rate of 3.486% and matures in December 2029.
The refi from an undisclosed lender or lenders replaces the previous $800-million loan that bore interest at a fixed rate of 4.39% and was scheduled to mature in October 2020. That loan helped finance the $1.3-billion acquisition of 650 Madison in October 2013.
Reuters reported at the time that Vornado Realty Trust and Oxford Properties Group joined the previously-announced partnership of Crown Acquisitions and Highgate Hotels in acquiring 650 Madison from the Carlyle Group. Today, Vornado owns a 20.1% stake in the JV and co-manages and co-leases the office space with Oxford, and the retail space with Crown.
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