The Real Deal New York

Vornado lands $400M Goldman loan for 350 Park Avenue

REIT generated $111M in proceeds after paying off previous debt on 571K sf tower
December 08, 2016 09:30AM

Lloyd Blankfein, Steven Rothand 350 Park Avenue

Lloyd Blankfein, Steven Rothand 350 Park Avenue

Vornado Realty Trust locked down a $400 million loan from Goldman Sachs for its 571,000-square-foot office tower at 350 Park Avenue.

The 10-year loan comes with a fixed rate of 3.92 percent. The deal gave Vornado net proceeds of $111 million after the real estate investment trust paid back the property’s existing $284 million mortgage and closing costs, Real Estate Weekly reported.

Commercial Mortgage Alert first identified Goldman Sachs as the lender.

Vornado TRData LogoTINY bought the 30-story, Emery Roth & Sons-designed “wedding cake” tower for $542 million in 2006 from an entity controlled by the Kuwaiti-owned Fosterlane Management Corporation.

The REIT financed the deal with an acquisition loan from Wachovia in the amount of $430 million.

The building between 51st and 52nd streets is fully leased. Tenants include the Citco Group of Companies, which signed a 20,000-square-foot lease last year to open a co-working location. Others include AT&T and Valley National Bank.

Vornado chairman and CEO Steven Roth, who is nearly 75 years old, has not yet announced a successor for the company he built into an industry behemoth, stoking uncertainty about the fate of the company once he exits, The Real Deal reported in November. [REW]Rich Bockmann