Alexander’s Amends Retail Loan at 731 Lexington Avenue

Rhea-AI Summary

ALEXANDER'S, INC. (ALX) has amended a $350 million mortgage loan on its retail condominium at 731 Lexington Avenue, reducing the principal to $300 million. The maturity date has been extended to August 2025, and the company guarantees interest payments and certain leasing costs. The loan, which remains interest-only at LIBOR plus 1.40% (currently 1.55%), is non-recourse to the company. The company operates seven properties in the greater New York City area.

Positive

• Reduction of mortgage principal from $350 million to $300 million.
• Loan maturity extended to August 2025.

Negative

• Interest payments and leasing costs guaranteed by the company.

PARAMUS, N.J., Sept. 14, 2020 (GLOBE NEWSWIRE) -- ALEXANDER’S, INC. (New York Stock Exchange: ALX) announced today that it has amended a $350 million mortgage loan on the retail condominium of 731 Lexington Avenue in Manhattan. Under the terms of the amendment, the Company paid down the loan by $50 million to $300 million, extended the maturity date of the loan through August 2025 and guaranteed the interest payments and certain leasing costs. The principal of the loan is non-recourse to the Company. The interest only loan remains at the same rate, LIBOR plus 1.40% (currently 1.55%).

Alexander’s, Inc. is a real estate investment trust that has seven properties in the greater New York City metropolitan area.

CONTACT:
MATTHEW IOCCO
(201) 587-8541

Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2019 and in Part II, Item 1A, of our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments, the financial condition of our tenants, general competitive factors and the impact of the COVID-19 pandemic.

FAQ

What did Alexander's, Inc. announce on September 14, 2020?

On September 14, 2020, Alexander's, Inc. announced the amendment of a $350 million mortgage loan, reducing the principal to $300 million and extending the maturity date to August 2025.

What are the details of the mortgage loan amendment by Alexander's, Inc.?

The amendment involved a $50 million paydown of the mortgage loan, now totaling $300 million, with a maturity extended to August 2025 and an interest rate of LIBOR plus 1.40%.

Is the mortgage loan on Alexander's retail condominium recourse or non-recourse?

The principal of the amended mortgage loan is non-recourse to Alexander's, Inc.

How many properties does Alexander's, Inc. own?

Alexander's, Inc. owns seven properties in the greater New York City metropolitan area.