Vornado Realty Trust has agreed to acquire the remaining 45 percent stake of One Park Avenue, becoming the sole owner of the 943,000-square-foot Midtown Manhattan mid-rise. Canada Pension Plan Investment Board will sell its interest in the 20-story asset at a price that values the property at $875 million.
The purchase price involves $158 million in cash, along with the assumption of CPP Investments’ share of the existing debt, which amounts to a total of $525 million. The deal is slated for closure in the third quarter of 2021.
Vornado first acquired an interest in the property back in 2011, at a valuation of $394.7 million and recapitalized the asset three years later with CPP Investments, at a $560 million valuation.
In March, the duo landed the current CMBS loan, provided by Deutsche Bank and Barclays. The $525 million mortgage loan bears an interest rate of LIBOR plus 1.11 percent—currently 1.20 percent—with a maturity date set for March 2026, as fully extended.
The property is 67 percent leased to New York University’s Langone Health medical center, with the agreement stretching through May 2050. According to CommercialEdge, other tenants include Robert A.M. Stern Architects, Clarins and Equinox.
Situated within the Gramercy Park submarket between 32nd and 33rd streets, the building is equidistant from Grand Central Terminal and Penn Station, while NYU Langone Health hospital is half a mile west. Dating back to the 1920s, the property offers roughly 52,380-square-foot floor plates and 100,000 square feet of retail.