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WASHINGTON, DC-Vornado Realty Trust has completed a $292.7-million refinancing of a class A Downtown asset it acquired last year. The Paramus, NJ-based firm realized net proceeds of approximately $133 million after repaying the existing loan on the Warner Building, a 560,000-sf office at 1299 Pennsylvania Ave. The 10-year interest-only loan has a fixed rate of 6.26% and matures in May 2016.
In December, Vornado acquired a 95% interest in the property. The purchase price was $319 million. Approximately $170 million was paid in cash, while the rest an assumption of an existing mortgage of $136 million and other debt of $13 million. Mortgage interest on that loan was 7.8%, due in May 2010.
Vornado has a 15.9-million-sf office portfolio in the area. Its holdings include the H Street Building Corp. and the Bowen Building, a 231,000-sf class A office located at 875 15th St. NW.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
