Vornado to get $525M to refi One Park Avenue

Deutsche Bank and Barclays will provide loan via CMBS deal

Vornado's Steven Roth and One Park Avenue (Photos via Getty, Vornado)
Vornado's Steven Roth and One Park Avenue (Photos via Getty, Vornado)

The owners of One Park Avenue are set to get a major refinancing deal.

Vornado Realty Trust and Canada Pension Plan Investment Board are in talks with Deutsche Bank and Barclays to receive a $525 million refi for the 22-story office tower in Midtown, Commercial Observer reported.

The banks intend to securitize the five-year, interest-only mortgage as a single-asset, single-borrower CMBS deal.

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The refinancing follows a 633,000-square-foot lease renewal in October by New York University’s Langone Medical Center. The lease was among the largest deals signed in 2020, according to Colliers International.

Other major tenants include Robert A.M. Stern Architects and Equinox.

Vornado acquired its initial equity stake in the building in 2011. Canada Pension Plan had joined as a partner after that, and now owns a 45 percent stake. [CO] — Akiko Matsuda