Report: Vornado Realty Seeks TALF Funds

NEW YORK CITY-Vornado Realty Trust is joining Developers Diversified Realty to become the second commercial real estate firm in line to get assistance from the Fed’s Term Asset-Backed Securities Loan Facility (TALF). The REIT intends to raise between $550 million and $600 million through a CMBS-backed bond sale, according to the Wall Street Journal , which cited people familiar with the deal.

The major owner of offices in the New York City and Washington, DC area and high-profile retail properties has about $440 million of debt maturing this year, $1.04 billion in 2010, $2.7 billion in 2011 and $3.2 billion in 2012, according to the Journal article, which wasn’t able to get confirmation from a Vornado spokesperson. The paper says that the company’s retail portfolio will be used as collateral in the offering.