Vornado Reels in $140M Package to Refi Long Island City Office Building
Vornado Realty Trust has secured a $140 million financing package from MUFG Union Bank to refinance The Center Building, an eight-story office building located at 33-00 Northern Blvd. in Long Island City, Queens, according to records filed today with the city’s Department of Finance.
The package includes a $100 million loan to refinance the property and an additional $40 million in the form of a gap mortgage. The $100 million portion is a seven-year, 4.14 fixed-rate loan with interest only payments for the first five years and principal amortization of $1.8 million per year after the fifth year, according an announcement from Vornado.
The $100 million debt consolidates and replaces roughly $62 million in previous debt from U.S. Bank, which was issued on March 15, 2013 and went through a commercial mortgage backed securities (CMBS) execution. The debt pays down the remaining $59.8 million within the roughly $1 billion Deutsche Bank-sponsored COMM 2013-LC13 CMBS transaction. Vornado assumed the $62 million following its $142 million purchase of the building in March 2015. After the CMBS mortgage pay-down and the deal’s closing costs, Vornado reeled in roughly $37.2 million in proceeds.
Built in 1915 and last renovated in 2012, the 471,000-square-foot office building houses multiple New York City government entities. It’s two largest tenants are the city’s Human Resources Administration—149,400 square feet on a lease set to expire in January 2022—and the Metro Transit Authority—127,383 square feet on a lease expiring in April 2020, according to information from Trepp.
A representative of Vornado did not immediately return a request for comment. Officials at MUFG Union Bank could not immediately be reached.