Vornado Realty Closes Loans on Midtown Properties
Alessia Pirolo Sept. 21, 2012, 3:55 p.m.
With a recently obtained mortgage and other two rumored to come next, Vornado Realty seems close to obtaining over $1 billion in loans on Midtown properties from some of the biggest players on the market.
The German Bank Landesbank Baden-Württemberg has recently provided $98 million of refinancing on 435 Seventh Avenue, at the corner with 34th Street. The 43,000-square-foot building is fully leased to the Swedish retailer H&M. Vornado Realty might now use part of the proceeds of the new loan to retire a $52 million mortgage provided in 2009 by HSBC Holdings.
The real estate company is rumored to be very close to even larger financing. Deutsche Bank, Goldman Sachs, UBS and Bank of China are teaming up to provide a $940 million mortgage on 1290 Avenue of the Americas, according to the Commercial Mortgage Alert. Vornado and Donald Trump bought the property in 2007.
Moreover, Citigroup and RBS are said to be close to originating a $390 million loan to finance the approximately $707 million purchase of the retail space at 666 Fifth Avenue, at 53rd Street, for which Vornado is in contract, reports the Commercial Mortgage Alert.
Vornado Realty declined to comment on these deals.