The site was once an Alexander's department store. Vornado Realty Trust, which owns approximately 30% of Alexander's, is developing the tower, which will contain 900,000 sf of office space, two floors for retail and approximately 100 condos. Original company estimates peg the cost of the project to be in excess of $650 million. In May of 2001, Bloomberg Inc. helped move things along by signing on for 700,000 sf in the under-construction project. The initial lease term is for 25 years and includes a 10-year renewal option. Newmark and Co. is leasing the remaining 186,000 sf, comprising the entire 21st through 28th floors and part of the 29th. The target date for availability is May. Last September, the Home Depot inked a deal for 83,000 sf at the site for its second Manhattan store, which is expected to open in the summer. Retailer H&M is another listed tenant.

The loan, which bears interest at 5.33%, matures in 10 years. The Hypo construction loan permits the release of the retail space for $15 million and requires all proceeds from the sale of the condos to be applied to the construction loan balance. Alexander's, which has six properties in New York and New Jersey, expects to write-off $3.1 million, or $0.61 per share, of deferred financing costs in the first quarter.