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Debt & Equity

Vornado secures $500M loan for 330 Madison Avenue

Vornado Realty Trust has secured a $500 million mortgage for 330 Madison Avenue in Midtown.

The seven-year loan matures in August 2024 and has a fixed rate of 3.475 percent. It replaces a $150 million mortgage from German bank Landesbank Baden Wurttemberg. Vornado did not disclose the lenders on the the new loan.

Part of the proceeds from the financing will be used to repay the existing loan. Vornado, which owns 25 percent of the tower as part of a joint venture, will get an $85 million cut from the financing, according to a company statement.

The property is a 40-story building located between 42nd and 43rd Street.  Some of the recent lease deals in the property include Swiss commodities firm Glencore and American Century Investment Management. Glencore signed a 60,000 s/f lease to take the entire seventh floor and part of the sixth floor earlier this year. Meanwhile, American Century signed a 41,210 s/f lease for the entire ninth floor in 2015.

Vornado has recently been active in refinancing its Manhattan properties. Last month, the firm, through its Alexander’s affiliate, secured a $500 million loan package for 731 Lexington Avenue. Vornado and joint venture partner Related Companies also landed a $396 million loan for 85 10th Avenue last December.

Other tenants in the building include HSBC, Jones Lang LaSalle and Wells Fargo. The retail on the ground floor is occupied by Citibank, Starbucks and Ann Taylor.

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