Vornado Realty Trust (NYSE:VNO) has announced that the partnership that owns the 43-story, 2.1 million square foot, midtown office building at 1290 Avenue of the Americas has completed a $950 million refinancing of the property. The 10-year interest-only loan has a 3.344% interest rate and net proceeds from the refinancing were approximately $522 million after repaying the existing loan and closing costs. Reportedly Deutsche Bank, Goldman Sachs, UBS Securities and the Bank of China financed the loan with commercial mortgage-backed securities.
Vornado owns 70% of the property, while Donald Trump’s organization owns the remaining 30%.
Vornado is one of the leading real estate investment trusts (REIT) in the United States with a portfolio of over 100 million square feet of commercial real estate. Its properties are located primarily in the New York and Washington D.C. areas. The core businesses of Vornado include New York Office and Retail Properties; Washington, D.C. Office Properties; and Retail Properties in the northeast states, California and Puerto Rico.
1290 Avenue of the Americas is a prestige address, adjacent to Rockefeller Center and Radio City Music Hall. It is currently undergoing major infrastructure modernization and building renovations. Improvements will include renovations to storefronts and a much grander entrance lobby, a new turnstile access system, modernized restrooms and a refurbished cooling tower.