Vornado Realty Trust has refinanced its 100 West 33rd Street building—home of Manhattan Mall—for $325 million. The REIT realized $87 million of net proceeds in the process.
The new loan, at an interest rate of LIBOR plus 2.5 percent, matures in March of 2015 and has two one-year extension options built in. Net proceeds were realized upon paying off the existing loan and closing costs for the current refinancing.
The 12-story building sits on the entire eastern block of Sixth Avenue between 32nd and 33rd Streets. It is 1.1 million square feet and includes the mall, at 243,000 square feet, and 847,000 square feet of office space.
Retail tenants at the Penn Plaza district building include JC Penney, Victoria’s Secret and Gamestop. Office tenants include Draft/Foote Cone & Belding and Polo Ralph Lauren.
The REIT had been in the market for a loan to replace the $232 million in debt that was coming due on the building. With the billions of dollars of commercial real estate loans coming due this year in New York City alone, experts say owners like Vornado Realty Trust are well situated to either pay down that debt or refinance it.