Vornado Seeks Loan on 330 Madison Avenue
A Vornado Realty joint venture wants to put a mortgage of up to $400 million on an office property in Midtown Manhattan.
The 742,000-square-foot building is at 330 Madison Avenue, between East 42nd and East 43rd Streets, one block from Grand Central Terminal. The Vornado partnership, assisted by brokerage Eastdil Secured, is asking lenders to submit bids for either fixed- or floating-rate loans with terms of 5-10 years. A full roster of lenders is chasing the assignment, including securitization shops, banks and insurers.
A loan of $400 million would represent approximately 55-60% of the building’s value. The Vornado team completed a $120 million renovation in 2011 that included a new lobby, elevators and mechanical systems. The partnership would use part of the proceeds of a new loan to retire the building’s $150 million of existing debt. That floating-rate loan, due to mature in June 2015, has an interest rate of 150 bp over one-month Libor.
The 39-story building is 95.4% occupied, according to a recent CoStar report. Guggenheim Partners is the biggest tenant, leasing 192,000 sf until 2027. Other tenants include Vornado subsidiary PowerSPACE & Services (82,000 sf) and HSBC (37,000 sf). The property has a LEED Silver certification.
Vornado owns a 25% stake in the building, in partnership with an unidentified institutional investor.