Alexander’s Inc. has completed a $350m refinancing of the retail portion at Manhattan’s 731 Lexington Avenue, the building commonly referred to as the Bloomberg Tower.
The five-year, interest-only loan with two one-year extension options was priced at LIBOR plus 1.40%, or 1.59%, at closing. The company, which is managed by Vornado Realty Trust and owns six properties in the greater New York City metropolitan area, said in a statement that it realized net proceeds of approximately $26m after repaying an existing $320m, 4.93% fixed-rate mortgage and closing costs.
The company declined to identify the lender.
Last year Vornado, headed by billionaire Steven Roth, refinanced the property’s office portion, which houses Bloomberg’s office headquarters, through the COMM 2014-BBG CMBS; the securitization is backed solely by a $300m commercial mortgage loan secured by the fee interest in two office condominium units at the address.
Alexander’s additional New York City properties also include Rego Park I, Rego Park II, Paramus, Flushing and Rego Park III. The publically traded company was originally a discount designer goods department store chain catering to low- and middle-income consumers in the New York metro area, operating 16 stores at its height.
Vornado’s additional partial and full holdings include Toys ‘R’ Us, JCPenney and the Merchandise Mart in Chicago.