Newswire

Vornado Acquires 100% of One Park Avenue

Vornado Realty Trust has agreed to acquire Canada Pension Plan Investment Board’s 45% interest in One Park Ave., increasing Vornado’s ownership interest to 100%. The purchase price values the property at $875 million. The consideration to CPP Investments is approximately $158 million in cash; Vornado is also 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% (currently 1.20%) and matures in March 2026, as fully extended.

One Park Avenue is a 943,000-square-foot Manhattan office building that is 67% leased to New York University (S&P: AA-) 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 purchase is expected to close in the third quarter of 2021, subject to customary closing conditions.

 

Sign Up for Newswire


    [ctct ctct-115 type:hidden 'Mann Report Newswire::#158']

    Advertisements