New York & Tri-State CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Vornado Refinances Midtown’s PENN 11 for $450M
Vornado Realty Trust has completed a $450-million refinancing of PENN 11, a 1.2-million-square-foot Manhattan office building located in Midtown Manhattan’s Penn District. The five-year, interest-only loan matures in August 2030 and has a fixed rate of 6.35%.
The office and retail REIT paid down by $50 million the prior $500-million loan that bore interest at a rate of SOFR plus 2.06% and was swapped to fixed at an all-in rate of 6.28%. It was scheduled to mature in October 2025.
Zacks Equity Research noted that the refi “offers Vornado enhanced financial flexibility. The extended maturities of the assumed debt will help the company improve its maturity profile and enjoy greater liquidity for day-to-day operations.” Zacks reported that Vornado shares have gained 13.8% over the past three months, compared to industry growth of 3.2%.
Opened in 1923 as the Equitable Life Assurance Building, PENN 11 serves as the New York headquarters of both Macy’s and AMC Networks.
- ◦Financing
