Vornado Realty Trust has upsized the existing loan on its 220 Central Park South development to $950m after terminating plans for a separate mezzanine loan.
The five-year loan from Bank of China ups an original $600m loan that the Chinese bank provided for the planned residential tower in January 2014, carrying an interest rate of LIBOR plus 2% and extending the final maturity date to 2020.
In connection with the upsizing, the standby commitment for a $500m mezzanine loan for this development has been terminated by payment of a $15m contractual termination fee, the firm said in a statement.
The Robert A.M. Stern-designed development calls for a 69-story, 160 unit residential tower that will feature an adjacent 14-story villa.
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.
Among other recent New York deals, Morgan Stanley and Deutsche Bank provided a $205m acquisition loan to Vornado for the $355m purchase of an Old Navy-anchored retail property next to Penn Station in Midtown Manhattan, Real Estate Capital first reported in June.
In December, a joint venture between HSBC, Landesbank Baden-Württemberg, Bank of China Limited, DekaBank and Union Bank provided Vornado with $575m for the refinancing of Two Penn Plaza.