May 12, 2016
Vornado Realty Trust, headquartered in New York City, announced that its 55% joint venture closed on a $273 million refinancing of the Warner Building at 1299 Pennsylvania Avenue in Washington, DC.
The 621,000 square-foot Warner Building is located down the block from the White House, and has a colorful history. It has, however, been a financial challenge for Vornado, which transferred the building’s $293-million debt to special servicer LNR Properties Inc. in advance of a May 12 maturity date.
The new seven-year loan gives the REIT a little breathing room, with an interest rate of 3.7% and interest-only payments for the first two years. Beginning in the third year, the loan amortizes, based on a 30-year schedule.