Vornado, Related land $271M Deutsche loan for Moynihan Train Hall

Acquisition loan is backed by the building’s ground lease

New York /
Jul.July 03, 2017 04:36 PM

Vornado Realty Trust and the Related Companies landed a $271 million loan package from Deutsche Bank to fund the first steps of the Moynihan Train Hall project, according to property records filed with the city Monday.

The financing, which consists of a $202.3 million acquisition loan, a $29 million building loan and a $39.7 million project loan, is secured by the property’s ground lease. Vornado and Related TRData LogoTINY leased the James E. Farley post office building from the Empire State Development Corporation and last month finalized a deal to convert the building into a new train hall in partnership with Skanska.

Under the deal, the developers will invest $630 million into the $1.6 billion project; the state will contribute $550 million; and MTA, Amtrak and other federal sources will chip in $420 million.

The federal funding is noteworthy because both Vornado and Deutsche have direct business ties to President Trump. Vornado owns the office towers 1290 Sixth Avenue in Midtown and 555 California Street in San Francisco in partnership with Trump, while Deutsche Bank lent him around $300 million in recent years for various development projects.

Meanwhile the fate of around 1.5 million square feet in air rights tied to the building remains unclear. “There will be private dollars. The air rights are going to bring in a whole lot of money,” Senate Minority Leader Chuck Schumer said recently.

The project will include 700,000 square feet of office and retail space and is expected to be completed in 2022.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
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
Related is the latest developer to target the Rockaways
Building 301 on Governors Island and Trust for Governors Island CEO Clare Newman (Gov Island)
Real estate partnership chosen for Governors Island climate hub
Real estate partnership chosen for Governors Island climate hub
Terwilliger & Bartone managing partner Anthony Bartone and 461 Railroad Avenue in Westbury LI (Google Maps, Terwilliger & Bartone, iStock)
Westbury apartment project scores 20-year tax break
Westbury apartment project scores 20-year tax break
Sam Nazarian (Getty, iStock)
Coachella resort fraudster duped Sam Nazarian
Coachella resort fraudster duped Sam Nazarian
Interactive Map of Projects Planned Under Gowanus Rezoning
Here they come: Map shows projects planned in rezoned Gowanus
Here they come: Map shows projects planned in rezoned Gowanus
The upstate land grab behind the solar power boom
The upstate land grab behind the solar power boom
The upstate land grab behind the solar power boom
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...