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HIGH POINT, NC-Vornado Realty Trust has completed the $195-million refinancing of High Point Complex. The transaction carries an interest rate of 6.1% and matures in August 2016.
As a result of the financing, Vornado realized net proceeds of approximately $83.8 million after repaying the existing loans on the property and the closing costs, including a $9-million defeasance cost. That cost will be recognized as an expense in the third quarter, according to a company statement.
High Point Complex consists of slightly more than two million sf of permanent and temporary showroom space in five buildings. The Paramus, NJ-based REIT closed on the purchase of the complex in December 1998. At the time, it consisted of 1.05 million sf of space. The deal carried a $97-million price tag, including $46 million in debt and $51 million in operating partnership units plus 6.5% preferred operating partnership units convertible at $43.74 per unit, a spokeswoman for the company tells GlobeSt.com.
The complex is managed by Merchandise Mart Properties, Inc., which Vornado acquired as part of the Kennedy Family portfolio in April 1998, according to GlobeSt.com research. Vornado paid $630 million for the Kennedy Family portfolio, which included office, retail and showroom space totaling approximately 5.3 million sf.
High Point is known as the home furniture capital of the world. It is home to the International Home Furnishings Market, which brings more than 70,000 people here every six months, according to the High Point Market website. All total, the High Point Market boasts 188 buildings, 12 million sf of showroom space and 2,500 exhibitors.
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