Vornado has disclosed that its joint venture with Crown Acquisitions has defaulted on a $450M non-recourse loan on the venture's highest-profile retail asset—the ground-floor space at the St. Regis hotel, 100 feet of prime frontage on Fifth Avenue that Vornado brands on its website as the "epicenter of the Fifth Avenue retail district."
The loan on 697-703 Fifth Avenue—the street address for the ground floor space at the St. Regis, which has its entrance on 55th Street—came due on December 21.
Vornado swung to a fourth-quarter loss from a profit after it wrote down the value of its equity investment in the joint venture, which includes a portfolio of Fifth Avenue and Times Square retail properties, by $596M, $483M of which represents its common equity investment in the venture, the company said.
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