Vornado refinances DC trophy tower

Vornado Realty Trust announced this week that its 55 percent owned joint venture has completed the $273 million refinancing of The Warner Building, a 621,000 sq ft office building at 1299 Pennsylvania Avenue in Washington, DC.

Vornado Realty Trust announced this week that its 55 percent owned joint venture has completed the $273 million refinancing of The Warner Building, a 621,000 sq ft office building at 1299 Pennsylvania Avenue in Washington, DC.

urlThe seven-year loan has a fixed rate of 3.65 percent and is interest only for the first two years followed by a 30-year amortization period.

The property, located three blocks from the White House, was previously encumbered by a $293 million mortgage that carried a 6.26 percent rate, the largest in JPMCC 2006-CB15. The New York-based real estate investment trust had struggled with elevated vacancy rates and the loan was transferred to special servicing last month as the original loan’s maturity (this month) loomed.

Lead tenant Howrey Simon Arnold & White dissolved and vacated roughly 50 percent of the property’s 602,000 sq ft in 2012. However, the latest servicer data indicated that the property was 79 percent occupied, according to a memo from Trepp this week.

Vornado, a real estate investment trust, is the owner and manager of commercial real estate with a portfolio that is mainly located in the New York City and the Washington, DC, area.

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