Morgan Stanley and Deutsche Bank provided a $205m acquisition loan to Vornado Realty Trust for the $355m purchase of an Old Navy-anchored retail property next to Penn Station in Midtown Manhattan, Real Estate Capital has learned.
The seller, a joint venture between Starwood Capital Group and Crown Acquisitions, purchased the property at 150 West 34th Street in April of 2014 for $252m, with $176.8m in financing from Morgan Stanley, $25m of which was mezzanine debt.
The 78,000 sq ft property at 150 West 34th Street, across the street from Macy’s, is leased to Old Navy through May 2019 and includes 226,000 sq ft of additional zoning air rights.
New York City developers can purchase undeveloped “air” above or adjacent to a property to expand the square footage of projects, suggesting that Vornado could opt to redevelop or expand the building.
Vornado, chaired by billionaire Steven Roth, is a real estate investment trust — listed on the New York Stock Exchange (VNO) — with a portfolio of mostly office and retail properties in New York City, Washington, DC and Chicago. The company also owns a stake in Toys “R” Us and a number of hotels and malls.