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Vornado Taking Full Ownership of One Park Ave.
Vornado Realty Trust will assume full ownership of One Park Ave. after Canada Pension Plan Investment Board’s 45% interest. The purchase price values the property at $875 million.
The consideration to CPP Investments is approximately $158 million in cash, and Vornado is assuming CPP Investments’ share of the existing debt. The property is currently encumbered by $525 million of debt, which bears interest at a rate of LIBOR plus 1.11% and matures in March 2026, as fully extended.
One Park Ave. is a 943,000-square-foot Midtown Manhattan office building, 67% leased to New York University through May 2050. Vornado originally acquired an interest in the property in March 2011 at a $394 million-valuation and recapitalized the property with CPP Investments in June 2014 at a $560-million valuation.
The acquisition is expected to close in the third quarter, subject to customary closing conditions.
- ◦Sale/Acquisition
