Related, Vornado land $396M Deutsche refi for Chelsea office

Google occupies 180K sf at 85 10th Ave

Dec.December 08, 2016 05:25 PM

Related Companies and Vornado Realty Trust secured a $396 million Deutsche Bank loan to refinance their Chelsea office building 85 10th Avenue, property records filed with the city Thursday show.

Related TRData LogoTINY bought the 540,299-square-foot office building, a former Nabisco factory, in 2007 from Somerset Partners for $430 million. The new mortgage replaces a $270 million acquisition loan from Deutsche Bank subsidiary German American Capital Corporation. Vornado reportedly owns a 50 percent stake in the property.

In 2014, Google leased about 180,000 square feet in the building, which is close to its main New York office at 76 Ninth Avenue.

Deutsche Bank is one of New York’s most active real estate lenders, issuing more than $13 billion worth of loans between 2011 and 2015 alone. But beyond New York, the bank is struggling with high debt and a possible $14 billion SEC fine over its role in the subprime mortgage crisis.

Related Articles

Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)

Related is the latest developer to target the Rockaways

Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

Free and clear: Vornado pays off debt at 220 CPS

Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call

Equinox Executive Chairman & Managing Partner Harvey Spevak, Related Companies CEO Jeff Blau and Equinox at Hudson Yards (Credit: Spevak by Jamie McCarthy/Getty Images for Gabrielle's Angel Foundation, Blau by Craig Barritt/Getty Images for Related-Oxford, Matthew Peyton/Getty Images for Equinox)

Equinox isn’t paying rent at multiple NYC locations

Related CEO Jeff Blau (Photo by Jared Siskin/Patrick McMullan via Getty Images)

Related’s Blau on tenants with cash: “It’s their obligation to pay”

Vornado Realty Trust’s Steven Roth and 220 Central Park South (Credit: Roth by Bruce Glikas/FilmMagic; Jim.henderson via Wikipedia Commons)

Vornado inks another $52M closing at 220 Central Park South

President Donald Trump and Deutsche Bank CEO Christian Sewing (Credit: Trump byMANDEL NGAN/AFP via Getty Images; Sewing by Thomas Lohnes/Getty Images)

Trump Org asks lender, landlord for a break

RCP CEO Richard O’Toole and Related CFO David Zussman (Credit: O’Toole via Westchester Magazine and Zussman via Related)

Related tries to calm Israeli investors after market panic