Free and clear: Vornado pays off debt at 220 CPS

REIT closed 38 units totalling $1.03B to date

TRD New York /
Jul.July 31, 2019 02:00 PM
Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

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

Steve Roth has called 220 Central Park South the “most successful” condo project anywhere, and now Vornado Realty Trust’s uber-luxe development is debt free.

The real estate investment trust said Tuesday that it’s paid off the remainder of a $950 million loan it got from Bank of China to construct the $1.4 billion tower, which cost a hefty $5,000 per foot to build. With a projected sellout of $3.25 billion, and more than $1 billion in sales to date, you can do the math.

“There is two-odd billion dollars coming out… with no debt requirements,” Michael Franco, Vornado’s chief investment officer, said during a quarterly earnings call on Tuesday. “That all comes into our treasury.”

Vornado has said it plans to reinvest proceeds from the Robert A.M. Stern-designed condo tower into its Penn Plaza area development, eliminating the need to take on additional debt.

The REIT is planning to overhaul two adjacent properties, One and Two Penn Plaza, by combining them into a 4.4 million-square-foot megacampus that Roth has called the company’s “big Kahuna.”

Despite a soft luxury market, the REIT sold 23 units for $690.8 million since January, the company reported Tuesday. In total, it’s closed 38 units for $1.03 billion.

The deal that’s generated the most ink? Citadel founder Ken Griffin’s record-breaking, $238 million penthouse buy, which closed in January. This month, British musician Sting closed on a $65.7 million penthouse in the “villa” portion of the building.

Other buyers include Paramount Group CEO Albert Behler, Brazilian billionaire Renata de Camargo and hedge funder Daniel Och.

Correction: A previous version of this article incorrectly identified the construction lender on 220 Central Park South. It’s Bank of China, not Bank of America. 

Related Articles

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

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

Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue

Vornado CEO Steve Roth with 220 Central Park South and 689 Fifth Avenue (Credit: Getty Images and Vornado)

After busy start to 2019, Vornado’s Roth says “we’re not done yet”

220 Central Park South and 423 Park Avenue (Credit: iStock and StreetEasy)

Why ultra-luxury condo buyers are paying millions too much

220 Central Park South and 960 Fifth Avenue with Aerin Lauder (Credit: Getty Images, Warburg Realty)

Who bought the priciest pads in Manhattan last month?

 Li Ge and 220 Central Park South (Credit: WuXi Biologics and Getty Images)

Biotech billionaire pays $26M for 220 CPS pad

Vornado’s Steve Roth and 220 Central Park South (Credit: Getty Images)

Another villa unit at 220 Central Park South sells for $47M

220 Central Park South and Vornado chairman Steven Roth (Credit: Google Maps and Getty Images)

Another $60M condo closes at 220 Central Park South