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New York & Tri-State  + Midtown New York  + Office  | 

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.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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