California + Bay Area + Finance | May 12, 2021

Vornado Realty Completes $1.2B Refi of 555 California

Vornado Realty Trust recently completed a $1.2 billion refinancing of 555 California St., a three building 1.8 million-square-foot office campus in San Francisco. Vornado’s share of the net proceeds was approximately $454 million.

The interest-only loan bears a rate of LIBOR plus 1.93 percent in years one through five, LIBOR plus 2.18 percent in year six and LIBOR plus 2.43 percent in year seven. The loan matures in May 2028, as fully extended.

Vornado swapped its share of the loan for the first three years to a fixed rate of 2.26 percent. The loan replaces the previous $533 million loan that bore interest at a fixed rate of 5.1 percent and was scheduled to mature in September 2021.

JPMorgan Chase took the lead on the securitization.

Vornado owns a 70 percent controlling interest in the building owner partnership and has sole decision-making authority. The minority partner of 555 California St. is the Trump Organization.

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About Lisa Brown

Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM. In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.

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