Vornado closes $375M refi at 888 Seventh Avenue

Loan replaces existing $319M mortgage due to expire in January
December 17, 2015 11:01AM

Vornado Realty Trust completed a $375 million refinancing of its 888 Seventh Avenue office tower in Midtown, the real estate investment trust announced Thursday.

The refinancing of the 45-story, 882,000-square-foot commercial property realized net proceeds of roughly $49 million for Vornado, in the form of a five-year loan at a fixed rate of 3.15 percent, the company said.

The deal replaces a previous $319 million mortgage on the property that, at an interest rate of 5.71 percent, was due to mature in January.

Private equity giant TPG Capital, the parent company of commercial brokerage Cushman & Wakefield, signed a new 10-year renewal and expansion for 100,000 square feet at 888 Seventh Avenue earlier this year.

The company recently saw another 100,000 square feet, or five floors, vacated at the office tower, Vornado said in its third quarter earnings call last month – but said it had already re-leased two of those floors at rents over $100 per square foot. – Rey Mashayekhi