Vornado and Aurora Receive $167.5M to Refinance 61 Ninth Ave.

NEW YORK CITY—Vornado Realty Trust and Aurora Capital Associates’ boxy, glass, cubed, Rafael Viñoly-designed office building in the Meatpacking District has received a $167.5 million loan from Landesbank Baden-Würtemberg. The refinancing was listed in Real Capital Analytics.

The seven-year, interest-only loan carries a rate of LIBOR plus 1.35% (currently 3.79%) and matures in January 2026. Vornado realized net proceeds of approximately $31 million.

The loan replaces a $90 million construction loan that had been provided by Helaba and CIT Group. That loan bore interest at LIBOR plus 3.05% and was scheduled to mature in 2021.

The nine-story, 170,000 square-foot building at 61 Ninth Ave., stands between W. 14th and W. 15th streets, next to the Apple store. It is fully leased to Aetna and Starbucks.

Aetna had planned to move its headquarters leasing 145,000 square feet at 61 Ninth Ave., where Vornado owns a 45.1% share. Multiple news outlets reported the asking rent at $150 per square foot. When CVS merged with Aetna, the insurance giant subsequently decided to maintain its headquarters in Hartford. This was despite approximately $35 billion in New York State and City tax incentives, which did not go forward after the relocation plans were nixed.

Last month Crain’s reported Yext, an online branding software company, was in talks to sublease Aetna’s space. Vornado declined to comment on the possible sublease. GlobeSt.com reached out to Yext and Aetna and will update this article if additional information is received.

After signing a 20-year lease, in December Starbucks opened a three-floor, 20,000 square-foot reserve roastery in the building. More a coffee center than shop, the expansive retail location with a working roastery is a place where customers can learn about the sourcing and roasting of beans, as well as brewing coffee. In addition to multiple counters and places to sit, it sells coffee, pastries, coffee beans and cocktails.