July 27, 2017
Vornado Realty Trust secured a $500-million loan to refinance 330 Madison Avenue, an 845,000-square-foot office building in New York. The REIT, which holds a 25% stake in the Manhattan property in a joint venture with ADIA subsidiary Chadison, secured the private CMBS debt financing from Wells Fargo Commercial Mortgage Securities, according to SEC filings.
The seven-year interest only loan matures in August 2024, and has a fixed rate of 3.475%. Vornado’s share of the net proceeds, after repayment of the existing $150-million loan and closing costs, was roughly $85 million.
The 40-story, 1963-era building, between 42nd and 43rd Streets, underwent a $120-million renovation in 2014. Since then, Vornado has executed more 600,000 square feet of new and renewal leases, bringing the office to 96.5% occupied.
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