DekaBank has completed the $300 million refinancing of Vornado Realty Trust’s nearly 1 million sq ft One Park Avenue office building in Manhattan.
The loan matures in March 2021 and is interest only at LIBOR + 1.75 percent (currently 2.19 percent), according to a statement from Vornado, which owns a 55 percent stake in the building.
The property was previously encumbered by a 4.995 percent $250 million mortgage maturing in March 2016; Morgan Stanley provided the previous, securitized debt in March of 2011, according to city property records.
Vornado, a real estate investment trust, raised its ownership stake in the property to a majority 55 percent from 49.7 percent in June 2014, making an additional investment of about $23 million; the stake of its joint venture partner, Canada Pension Plan Investment Board, increased to 45 percent at that time.
Murray Hill Properties, previously a principal owner, which had spent about $15 million renovating the building, retained just a 5 percent stake. Murray Hill and its partners had purchased the property in 2007 from SL Green for $550 million.
In early 2014 Vornado was said to have hired a broker to market the property for $650 million, but a sale never occurred. The 20-story office building was built in 1925 and the building occupies the entire eastern block front of Park Avenue, between 32nd and 33rd Street in Midtown South.