Vornado Secures $500M Refi for Manhattan Tower
- Oct 19, 2020
Vornado Realty Trust has received a $500 million refinancing package for the 1.2 million-square-foot PENN11 in Midtown Manhattan. The interest-only mortgage carries a LIBOR rate of plus 2.75 percent and a maturity date set for October 2025.
The loan retires a previous $450 million financing scheduled to mature at the end of 2020. Yardi Matrix data shows that AXA Equitable Life Insurance Co.—operating as The Equitable Life Assurance Society of the U.S. at the time—provided the mortgage in 2013 with a 3.95 percent interest rate.
Located at 393 Seventh Ave. between 31st and 32nd streets, the 26-story tower is adjacent to Penn Station and Madison Square Garden and is two blocks from the Empire State Building. Completed in 1923, the LEED Gold-certified building underwent lobby and facade restorations on the Seventh Avenue. The tower, formally known as 11 Penn Plaza, is home to tenants including Macy’s, PNC Bank and Starbucks.
In early August, Facebook signed a 730,000-square-foot lease at Vornado Realty Trust’s Farley Building, also in Midtown. The adaptive reuse project next to Penn Station is a redevelopment of the historic post office into a mixed-use complex.