Vornado Realty Trust’s sale of the 29-story office building at 40 Fulton Street hit property records Wednesday, concluding a case study on how interest rates can affect a commercial transaction.
Investor David Werner purchased the Financial District building for $101 million, well below the $130 million to $140 million Vornado sought for the 251,000-square-foot building upon putting it on the market last spring.
The financing for the acquisition is also notable. Two relative unknowns in the New York office market, UMB Bank and the Bank of New Hampshire, provided loans of $45 million and $25 million, respectively, according to public records. The former was listed as a trustee in its lending agreement.
Vornado disclosed in August that it had agreed to sell the property for $102 million, good for a $33 million profit for Steve Roth’s real estate investment trust.