{"id":1004048979,"date":"2012-10-24T07:24:51","date_gmt":"2012-10-24T15:24:51","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004048979"},"modified":"2022-12-06T10:33:59","modified_gmt":"2022-12-06T18:33:59","slug":"vornado-buys-25-percent-interest-in-475m-debt-on-times-square-project","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/vornado-buys-25-percent-interest-in-475m-debt-on-times-square-project\/","title":{"rendered":"Vornado Buys 25 Percent Interest in $475M Debt on Times Square Project"},"content":{"rendered":"

By Barbra Murray, Contributing Editor\u00a0<\/em><\/p>\n

Vornado Realty Trust appears to be in a New York state of mind. Just days after Vornado announced its agreement to sell a Brooklyn mall and a Long Island mall for nearly $1.2 billion, news has emerged of the REIT’s acquisition of a 25 percent participation in the $475 million first mortgage and mezzanine loan on the property at 701 Seventh Ave., which will be redeveloped into the $800 million, mixed-use Times Square Gateway Center.<\/p>\n

Vornado acquired the interest in the debt from Starwood Property Trust and Starwood Capital Group’s Starwood Distressed Opportunity Fund IX, which co-originated the mortgage and mezzanine debt for the acquisition and redevelopment of 701 Seventh by The Witkoff Group, New Valley L.L.C. and a subsidiary of Winthrop Realty Trust. The team, which snapped up the site for $430 million, plans to remove part of a 10-story office structure that has stood at the two-building site for more than 100 years to construct 130,000 square-feet of premier retail space and a 120-foot tall, 22,000-square-foot LED sign at a total cost of $170 million. Additionally, 145,000 square feet of air rights will ultimately allow for a $200 million, 500-room hotel high-rise.<\/p>\n

Of the $375 million in financing that was funded for the project at closing, Vornado contributed $93.8 million.<\/p>\n

Industry analysts see Vornado’s acquisition of a participation in the mortgage and mezzanine loan on Times Square Gateway Center as a good move in the increasingly competitive investment sales market. Imperial Capital just upgraded its Vornado recommendation from a hold to a buy.<\/p>\n

“Obviously, there’s a tremendous amount of competition to buy good assets in New York and Washington, which are Vornado’s chosen markets and what this [acquisition] represents is the type of investment that some potential investors–such as sovereign wealth funds, pension funds–would be perhaps a little wary of making,” David Harris, an analyst with investment banking firm Imperial Capital L.L.C., told Commercial Property Executive<\/em>. “We’ve frequently seen Vornado make opportunistic acquisitions, kind of off the mainstream, and I think that’s really where the value creation proposition is.”<\/p>\n","protected":false},"excerpt":{"rendered":"

Vornado Realty has acquired a 25-percent participation in the $475 million first mortgage and mezzanine loan on the property at 701 Seventh Ave. in Manhattan.<\/p>\n","protected":false},"author":969,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21783,11,21752,21742,21749],"tags":[],"class_list":["post-1004048979","post","type-post","status-publish","format-standard","hentry","category-investment","category-midatlantic","category-mixed-use","category-latest","category-retail"],"acf":[],"yoast_head":"\nVornado Buys 25 Percent Interest in $475M Debt on Times Square Project - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/vornado-buys-25-percent-interest-in-475m-debt-on-times-square-project\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vornado Buys 25 Percent Interest in $475M Debt on Times Square Project\" \/>\n<meta property=\"og:description\" content=\"Vornado Realty has acquired a 25-percent participation in the $475 million first mortgage and mezzanine loan on the property at 701 Seventh Ave. in Manhattan.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/vornado-buys-25-percent-interest-in-475m-debt-on-times-square-project\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2012-10-24T15:24:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-06T18:33:59+00:00\" \/>\n<meta name=\"author\" content=\"Barbra Murray\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/vornado-buys-25-percent-interest-in-475m-debt-on-times-square-project\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/vornado-buys-25-percent-interest-in-475m-debt-on-times-square-project\\\/\"},\"author\":{\"name\":\"Barbra Murray\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/d1edda962dd3af55af8a203870f9fc32\"},\"headline\":\"Vornado Buys 25 Percent Interest in $475M Debt on Times Square Project\",\"datePublished\":\"2012-10-24T15:24:51+00:00\",\"dateModified\":\"2022-12-06T18:33:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/vornado-buys-25-percent-interest-in-475m-debt-on-times-square-project\\\/\"},\"wordCount\":354,\"commentCount\":0,\"articleSection\":[\"Investment\",\"Mid-Atlantic\",\"Mixed Use\",\"News\",\"Retail\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/vornado-buys-25-percent-interest-in-475m-debt-on-times-square-project\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/vornado-buys-25-percent-interest-in-475m-debt-on-times-square-project\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/vornado-buys-25-percent-interest-in-475m-debt-on-times-square-project\\\/\",\"name\":\"Vornado Buys 25 Percent Interest in $475M Debt on Times Square Project - 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