Vornado’s Retail JV Completes $450 Million Financing of 1535 Broadway
Vornado Realty Trust (NYSE:VNO) has announced the completion of a $450 million financing for 1535 Broadway, a premier Times Square retail destination featuring full blockfront 4K LED signage. The property is owned through Vornado's 52% owned street retail joint venture.
The financing terms include:
- Interest-only, non-recourse loan
- Fixed interest rate of 6.90%
- Maturity in May 2030
After accounting for transaction costs and reserves, $407 million of the net proceeds were utilized to partially redeem Vornado's Retail JV preferred equity.
Vornado Realty Trust (NYSE:VNO) ha annunciato il completamento di un finanziamento da 450 milioni di dollari per 1535 Broadway, una destinazione commerciale di primo livello a Times Square con una segnaletica LED 4K a tutta facciata. La proprietà è detenuta tramite la joint venture di vendita al dettaglio di Vornado, di cui detiene il 52%.
I termini del finanziamento includono:
- Prestito non ricorrente con solo interessi
- Tasso d’interesse fisso del 6,90%
- Scadenza a maggio 2030
Detratte le spese di transazione e le riserve, 407 milioni di dollari dei proventi netti sono stati utilizzati per il rimborso parziale del capitale preferenziale della joint venture retail di Vornado.
Vornado Realty Trust (NYSE:VNO) ha anunciado la finalización de un financiamiento de 450 millones de dólares para 1535 Broadway, un destino comercial destacado en Times Square con señalización LED 4K de bloque completo. La propiedad es poseída a través de la empresa conjunta de venta minorista de Vornado, en la cual posee un 52%.
Los términos del financiamiento incluyen:
- Préstamo sin recurso con solo intereses
- Tasa de interés fija del 6,90%
- Vencimiento en mayo de 2030
Después de considerar los costos de transacción y reservas, se utilizaron 407 millones de dólares de los ingresos netos para redimir parcialmente el capital preferente de la empresa conjunta minorista de Vornado.
Vornado Realty Trust (NYSE:VNO)는 전면 4K LED 간판을 갖춘 타임스 스퀘어의 주요 소매 목적지인 1535 Broadway에 대해 4억 5천만 달러 규모의 금융을 완료했다고 발표했습니다. 해당 부동산은 Vornado가 52% 지분을 보유한 스트리트 리테일 합작 투자를 통해 소유하고 있습니다.
금융 조건은 다음과 같습니다:
- 이자만 납부하는 무소구 대출
- 고정 이자율 6.90%
- 만기일 2030년 5월
거래 비용과 준비금을 차감한 후, 4억 700만 달러의 순수익이 Vornado의 소매 합작 투자 우선주 일부 상환에 사용되었습니다.
Vornado Realty Trust (NYSE:VNO) a annoncé l’achèvement d’un financement de 450 millions de dollars pour le 1535 Broadway, une destination commerciale de premier plan à Times Square avec une signalisation LED 4K couvrant tout le pâté de maisons. La propriété est détenue via la coentreprise de vente au détail de Vornado, dont il possède 52%.
Les conditions du financement comprennent :
- Prêt sans recours avec intérêts uniquement
- Taux d’intérêt fixe de 6,90%
- Échéance en mai 2030
Après déduction des frais de transaction et des réserves, 407 millions de dollars des produits nets ont été utilisés pour rembourser partiellement les capitaux privilégiés de la coentreprise Retail de Vornado.
Vornado Realty Trust (NYSE:VNO) hat die erfolgreiche Finanzierung von 450 Millionen US-Dollar für 1535 Broadway bekannt gegeben, eine erstklassige Einzelhandelslage am Times Square mit einer durchgehenden 4K-LED-Beschilderung. Die Immobilie befindet sich im Besitz eines von Vornado zu 52% gehaltenen Joint Ventures im Einzelhandel.
Die Finanzierungsbedingungen umfassen:
- Nur Zinszahlung, nicht rückgriffsfähiges Darlehen
- Fester Zinssatz von 6,90%
- Fälligkeit im Mai 2030
Nach Abzug von Transaktionskosten und Rücklagen wurden 407 Millionen US-Dollar der Nettoerlöse zur teilweisen Rückzahlung des Vorzugsanteils des Einzelhandels-Joint Ventures von Vornado verwendet.
- Secured substantial $450M financing for prime Times Square retail property
- Non-recourse loan structure limits company's liability
- Long-term financing secured until 2030 provides stability
- Partial redemption of preferred equity may improve capital structure
- High fixed interest rate of 6.90% in current market conditions
- Only $407M available after costs, indicating significant transaction expenses
Insights
Vornado's completion of a
The strategic decision to use
The non-recourse nature of the loan is particularly advantageous, as it insulates Vornado from additional liability beyond the property itself. The interest-only structure eliminates amortization requirements through 2030, maximizing cash flow from the asset during the loan term.
This transaction demonstrates Vornado's continued ability to access capital markets for its premium assets despite challenging conditions in commercial real estate financing. The successful execution on a marquee Times Square property with distinctive LED signage highlights the enduring institutional demand for high-quality retail assets in irreplaceable locations.
NEW YORK, April 14, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that its
After transaction costs and reserves,
Vornado Realty Trust is a fully-integrated equity real estate investment trust.
CONTACT
Thomas J. Sanelli
(212) 894-7000
Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. 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, 2024. Currently, some of the factors are the increased interest rates and inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general.
FAQ
What are the key terms of VNO's new $450 million financing for 1535 Broadway?
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