The Real Deal New York

Vornado secures $205M loan for Old Navy building

REIT bought Herald Square retail property for $355M earlier this month
June 17, 2015 12:01PM

Vornado Realty Trust received a $205 million acquisition loan from Morgan Stanley to help finance its purchase of the Old Navy building in Herald Square.

Vornado bought the three-story building, located at 144-150 West 34th Street, for $355 million earlier this month from a partnership between Starwood Capital Group and Crown Acquisitions, as The Real Deal reported

Starwood and Crown paid $252 million to acquire the retail property from KLM Construction last year, according to the New York Observer. Morgan Stanley also helped finance that deal, lending $175 million to the partnership.

Vornado’s three-year loan bears an interest rate of 2.25 points over Libor and two one-year extension options.

The 78,000-square-foot building is fully leased to Old Navy, whose term expires in May 2019. The property also contains air rights allowing for 300,000 square feet of redevelopment. [NYO]Rey Mashayekhi