Vornado Realty Trust and its partner scored a stellar deal to refinance their big multifamily complex in Tribeca.
Steve Roth’s firm and Stellar Management landed $675 million in commercial mortgage-backed securities for its residential hub Independence Plaza, the Commercial Observer reported. The five-year loan retires debt that was set to mature next month.
A consortium of lenders — Deutsche Bank, Wells Fargo, Bank of America and Morgan Stanley — provided the financing. A Newmark team including Jordan Roeschlaub, Adam Spies and Jonathan Firestone arranged the deal.
The refinancing was first reported by Multi-Housing News.
Independence Plaza includes three buildings, located at 40 Harrison Street, 80 North Moore Street and 310 Greenwich Street. There are 1,328 units at the complex, which spans 1.4 million square feet.
The complex was initially rent-regulated under the Mitchell-Lama program, but transitioned when Stellar bought into the property in 2003. Still, 40 percent of units are either rent-regulated or designated affordable, split between Section 8 housing and city-supported units.
Amenities include a fitness center, a swimming pool, a children’s playroom and laundry facilities. There’s 55,000 square feet of retail space, occupied in part by a grocery store.
Vornado jumped into the fray in 2012, buying a majority share of the complex as it looked to make at least half of the apartments market-rate units. In 2018, Goldman Sachs provided a seven-year, $675 million loan, which was securitized into a single-asset mortgage-backed securities deal.
Cushman & Wakefield recently pinned the valuation of the complex below $1.2 billion, an 11 percent decrease from 2018, according to Fitch Ratings.
Big changes could be ahead for the complex, as Crain’s reported ownership plans to add a 1 million-square-foot tower with 900 units to the property — but placed those plans on hold in response to zoning changes under “City of Yes” legislation.
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