Thursday, March 3, 2011

Vornado Realty Trust Spent a Total of $180 million in NNN Lease Building

NNN Lease Market News
Vornado Realty Trust spent a total of $180 million to recapitalize and gain control of the 925,000-square-foot office building 1 Park Avenue from Norman Sturner's Murray Hill Properties, which was in danger of losing the property to lenders.

The cash infusion included about $30 million in tenant improvement costs and other reserves, while at the same time Vornado secured $250 million in debt from a major investment bank, a person familiar with the deal, which closed last night, said. Murray Hill retained a small portion of the equity on the 20-story building located between 32nd and 33rd streets, the source said.                                                                             

Vornado Realty Trust is a fully-integrated real estate investment trust (REIT). Vornado is one of the largest owners and managers of commercial real estate in the United States with a portfolio totaling over 100 million square feet, primarily located in the New York City and Washington, DC metropolitan areas. The Company’s four major platforms include: New York City Office; Washington, DC Office; Retail and Merchandise Mart.

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