Vornado Realty and SL Green Close $1B 280 Park Avenue Refi [Updated]
By Mack Burke August 24, 2017 1:21 pm
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Vornado Realty Trust and SL Green Realty Corp. announced yesterday that they closed $1.2 billion in refinancing for the roughly 1.3-million-square-foot office building at 280 Park Avenue.
Deutsche Bank provided the floating-rate, interest-only loan on the Midtown trophy asset, according to a source with knowledge of the deal. The loan is set to mature in September 2024, according to a news release from the landlords. The loan carries a rate of Libor plus 1.73 basis points and replaces $900 million in existing debt provided by Deutsche Bank (DB) and Bank of China in May 2016 that had a maturity date of March 2023.
Located between East 48th and East 49th Streets, the building underwent $150 million in renovations to its façade and interior, the landlords said. The makeover included expansion of the building’s lobby, enhancement of its environmental sustainability, redesign of the building’s plaza and infrastructure upgrades such as new elevator cabs and bathrooms.
The 43-story, Class A building building is at 97 percent occupancy with tenants like the Four Seasons restaurant in 22,299 square feet (not yet open), Wells Fargo in 29,000 square feet and Blue Mountain Capital Management in 78,617 square feet.
Officials at Vornado, SL Green (SLG) and Deustche declined to comment on the deal.
Update: This story was edited to include that Deutsche Bank provided the loan.
