Vornado Realty Trust has completed a refi of One Park Ave., a 943,000 square foot office building in Manhattan of which it owns 55%. The $ 525 million interest-only CMBS loan bears a LIBOR plus 1.107% rate and matures in February 2026. The loan replaces the previous $ 300 million loan that bore interest at LIBOR plus 1.75% and was scheduled to mature in March 2021. Vornado’s share of the net proceeds was approximately $ 105 million.
The variable rate loan has an initial term of two years with three options for one-year extension and requires monthly interest payments based solely on one-month’s LIBOR, according to the Kroll Bond rating agency. The loan is secured by the borrower’s fee simple interest in the 20 story Midtown office.
In January 2021, the building was 97.7% let to 16 tenants. The top five tenants are New York University (which contributes 61.4% of the total base rent and occupies 67.1% of the total square footage); Robert AM Stern (9.0%, 7.0%); Equinox One Park Avenue (6.8%, 6.9%); Clarins USA Inc. (5.6%, 4.1%; and Citibank NA (4.6%, 1.4%). Together, these five tenants represent 87.4% of total base rent and 86.5% of the total area, according to Kroll.