Alexander’s Cashes Out Nearly $200M in Manhattan Refi

The office portion of 731 Lexington Ave. in Manhattan received $500 million in refinancing, which matures in June of 2024.

731 Lexington Ave., New York
731 Lexington Ave., New York

Alexander’s Inc., a Vornado Realty Trust affiliate, completed a $500 million refinancing of the office portion of 731 Lexington Ave. in Manhattan. 

The interest-only loan is at LIBOR plus 0.9 percent (currently 1.95 percent) and matures in June 2024, as extended. The Paramus, N.J.–based REIT realized net proceeds of about $188 million after repaying the existing $300 million mortgage and closing costs. 

The existing mortgage bore interest at LIBOR plus 0.95 percent and was to mature in March 2017, with four one-year extension options available. The proceeds from a March 2014 refinancing were used to repay a previous $312 million, 5.3 percent fixed-rate loan, along with closing costs.

The 55-story, LEED Silver, Class A building was completed in 2004 and also offers 160,000 square feet of retail and 260,000 square feet of residential space. Bloomberg Tradebook and Citibank are two of the major office tenants, according to Yardi Matrix.

Image courtesy of Yardi Matrix