Vornado to Land $525M Refi for Manhattan Office Building

Vornado Realty Trust is set to obtain $525 million in refinancing for One Park Avenue, a 944,571-square-foot Manhattan office building, according to a KBRA rating. Wells Fargo, Morgan Stanley Bank, Goldman Sachs and PNC Bank will originate the note next month.

The floating-rate loan has an initial two-year term with three, one-year extension options. KeyBank National Association is the special servicer, while Computershare Trust Co. is the trustee.

The note, along with $7.2 million in sponsor cash equity, will refinance a $525 million existing debt, fund reserves and pay closing costs. The previous loan was originated in March 2021 by Deutsche Bank Trust Co., according to Yardi Matrix information.

The office loan originations surged 181 percent year-over-year in the third quarter of 2025, according to a Mortgage Bankers Association report. Quarter-over-quarter growth reached 67 percent, signaling a recovery in line with broader shifts across office real estate trends.

Last week, The Moinian Group also landed $310 million refinancing loan for 535-545 Fifth Ave., two Manhattan office buildings totaling 515,917 square feet.

A 1920s office building

Built in 1925 in Midtown Manhattan, the LEED Gold-certified property is between East 32nd and 33rd streets. The 20-story high-rise has floorplates ranging from 30,000 to 52,383 square feet, as well as more than 109,000 square feet of retail space.

As of January, the building was 93.8 percent leased to 12 tenants, including New York University, Citibank Equinox and BMG Rights Management, among others.

Vornado Realty Trust acquired the asset back in April 2011, Yardi Matrix shows. MHP Real Estate Services sold the property for $394.7 million. Since then, the firm implemented about $140.1 million in renovations, including, common-area upgrades, tenant improvements and roof replacement.

Manhattan’s office sector held steady through the end of last year. As of November, the market’s vacancy rate clocked in at 13.4 percent, dropping 310 basis points year-over year and remaining well below the 18.5 percent U.S. average, a Yardi Matrix office report shows. In terms of transactions, the borough continued to rank first nationally, with $7.3 billion worth of assets changing hands through November, trading for an average of $514 per square foot.