Vornado Realty Trust received a $205 million acquisition loan from Morgan Stanley to help finance its purchase of the Old Navy building in Herald Square.
Vornado bought the three-story building, located at 144-150 West 34th Street, for $355 million earlier this month from a partnership between Starwood Capital Group and Crown Acquisitions, as The Real Deal reported
Starwood and Crown paid $252 million to acquire the retail property from KLM Construction last year, according to the New York Observer. Morgan Stanley also helped finance that deal, lending $175 million to the partnership.
Vornado’s three-year loan bears an interest rate of 2.25 points over Libor and two one-year extension options.
The 78,000-square-foot building is fully leased to Old Navy, whose term expires in May 2019. The property also contains air rights allowing for 300,000 square feet of redevelopment. [NYO] – Rey Mashayekhi