Vornado Gets $290M Construction Loan to Upgrade New Jersey Mall
- Mar 24, 2008
Vornado Realty Trust has closed a construction loan that will provide up to $290 million for the REIT’s renovation and expansion of Bergen Town Center, a 900,000-square-foot shopping center in Paramus, N.J. The interest-only loan has a rate of LIBOR plus 1.50 percent and matures in March 2011, with two one-year extension options. In addition to the renovation, the center will be expanded by 250,000 feet of space to be built on 27.5 acres adjacent to the mall. The center is currently anchored by Filene’s Basement, Century 21 and Marshalls; the renovation and expansion will add Whole Foods and Target. Opened in 1957, the mall is New Jersey’s oldest. Vornado acquired the center, previously known as The Bergen Mall, in December 2003 for approximately $145 million as part of a Section 1031 tax-free like-kind exchange with a portion of the proceeds from its sale of Two Park Avenue in Manhattan. Vornado is one of the nation’s largest commercial real estate owners and managers, with a portfolio totaling approximately 118 million square feet, including 177 retail properties totaling approximately 21.9 million square feet.