Vornado JV Completes $161 Million Refinance with SOFR+3.85% Rate
Vornado’s 45.1% joint venture refinanced its 61 Ninth Avenue property with a $161 million interest-only loan maturing in March 2029 and carrying SOFR plus 3.00% year one, 3.35% year two and 3.85% thereafter. The new facility replaces a $155 million loan at SOFR plus 2.45% due November 2026.
1. Financing Terms
The joint venture secured a $161.0 million interest-only loan maturing March 2029. The loan carries rates of SOFR plus 3.00% in year one, 3.35% in year two and 3.85% thereafter, replacing the prior $155.0 million loan at SOFR plus 2.45% due November 2026.
2. Property and Joint Venture Details
The financed asset is a 194,000 square-foot office and retail building at 61 Ninth Avenue in Manhattan’s Meatpacking District. Vornado holds 45.1% of the joint venture, with the property fully leased to Aetna’s corporate offices and Starbucks at ground level.
3. Impact on Vornado’s Financial Profile
Extending the debt maturity to 2029 reduces near-term refinancing risk but raises the cost of capital given the wider interest spreads. The incremental $6.0 million increase in loan size improves liquidity for JV partners while locking in longer financing tenure.