EXHIBIT 99.1
CONTACT: | STEPHEN THERIOT |
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| (201) 587-1000 |
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| 888 Seventh Avenue |
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| New York, NY 10019 |
FOR IMMEDIATE RELEASE – December 14, 2016
Vornado Receives $192 Million and a
49.9% Interest in 85 Tenth Avenue
NEW YORK….VORNADO REALTY TRUST (NYSE:VNO)announcedthattheentity thatowns85TenthAvenue hascompleteda$625millionrefinancingof the property. The indebtedness matures inDecember2026andhasaweightedaverageinterestrateof4.55%.
Outoftheproceedsoftherefinancing,Vornadoreceived$192millioninrepaymentof itsloanstotheentity. In2007,Vornadomade$50millionof11%PIKmezzanineloanstotheentityandin2013and 2014fundedanadditional$23millionbringing itstotalinvestmentto$73 million.
Inconnection with its initial investment, Vornadoreceived theright toa49.9%interestin theentityuponrepaymentofthemezzanineloans. Accordingly,Vornadonowownsa49.9% interest in the entitythatowns 85 Tenth Avenue.
In conjunction with the repayment, in the fourth quarter Vornado will recognize afinancial statementgainof approximately$161millionand no taxgain.
85TenthAvenueisa618,000squarefootManhattanofficebuildinglocatedonthe borderoftheWestChelseaandMeatpackingDistricts,directlyacrossthestreetfromChelseaMarketandTheHighLine,withdirectHudsonRiverviews. Theprincipaltenantsat85Tenth Avenue include Google, General Services Administration, Telehouse International, L-3Communications,MoetHennessyUSA,DelPostoandToroNYCRestaurant. Thepropertyis100%leased.
Vornado Realty Trust is a fully integrated equity real estate investment trust.
Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.
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