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Vornado Takes 38% Stake in Crowne Plaza Recap

NEW YORK CITY-The REIT is chipping in to help reposition the troubled 795-key hotel located at 48th St. and Broadway in the heart of Times Square.

By Jacqueline Hlavenka | Updated on February 17, 2012

NEW YORK CITY-A fund managed by Vornado Realty Trust has participated in the recapitalization of the Crowne Plaza Times Square Hotel in a joint venture deal with property owner City Investment Fund, the company unveiled Friday morning.  The REIT now holds a 38% stake in the property, and Vornado’s fund investment is subordinate to the property’s $259 million of senior debt, which matures in December 2013 with a one-year extension option.

In May 2011, Vornado agreed to acquire the $34-million most junior trache of the property’s mezzanine debt. Several months later in December, Vornado contributed $31 million and its partner chipped in $22 million to pay down third-party debt for future capital expenditures.

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