Vornado's loan is subordinate to $900 million of other debt. The loan is based on a rate of LIBOR plus 8.685% with a LIBOR floor of 1.5% and currently yields 10.185%. The loan matures in October 2005, with three one-year extensions. Further, the REIT will make an additional $25 million loan, as part of a $50 million loan, the balance of which will be funded by an affiliate of Soros Fund Management LLC. The loan, which is junior to the $1.1 billion of loans, is based on a rate of LIBOR plus 12.81% and currently yields 14.31%. The loan matures in October 2005, with three one-year extensions, and is expected to be funded in the next 30 days.

Vornado officials had no other comment beyond what was included in a statement about the issuing of the loan. Tenants at the 767 Fifth, where rents can go from $90 per sf and up, include GM Corp., Bank of America and Estee Lauder.

The GM Building has been making news practically all year. First in May, an arbitration panel voted that previous owner Trump must sell his 50% stake in the skyscraper to his partner, bankrupt insurer Conseco for $15.6 million. Conseco filed for bankruptcy-court protection last December. Then, in early June, Donald Trump and Conseco reached an agreement on a long-standing dispute over control and distribution of profits of the Fifth Avenue property. The pair, who had purchased the 50-story property for $878 million in 1998, agreed to sell it. Conseco originally made a $211 million equity investment and Trump an $11 million one. Macklowe was the high bidder--winning the billion-dollar deal that had all of the real estate environment talking.