Vornado debt cut by $100M to $480M in Penn Station refi

Vornado Realty Trust through the entity VNO 100 West 33rd Street LLC as borrower signed a refi loan with lender U.S. Bank through the entity U.S. Bank National Association valued at $480 million for the office building at 100 West 33rd Street with an alternate address of 1275 Broadway in Penn Station, Manhattan.
The deal closed on June 15, 2022 and was recorded on June 28, 2022. The prior lender was U.S. Bank which held debt that had an original loan amount of $580 million. The property has 1,105,991 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $433 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Vornado Realty Trust was Steven J. Borenstein. The signatory for U.S. Bank was Kimbery Feldman.

Prior sales and revenue

The 1,105,991-square-foot property generated revenue of $82.3 million or $74 per square foot, according to the most recent income and expense figures.

The property

The 100 West 33rd Street parcel has frontage of 400 feet and is 197 feet deep with a total lot size of 79,002 square feet. The zoning is C6-6 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received five DOB violations and $3,685 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Penn Station, the majority, or 68 percent of the 22.9 million square feet of commercial built space are office buildings, with residential elevator buildings next occupying 11 percent of the space. In sales, Penn Station has near average sales volume among other neighborhoods with $315.7 million in sales volume in the last two years and is the 28th highest in Manhattan. For development, Penn Station has 2.6 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Manhattan. It had 2.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of one of the four commercial properties representing 1,105,991 square feet of the 2,319,315 square feet. The identified owner is Vornado Realty Trust. There are no active new building construction projects on this tax block.

the majority, or 100 percent of the 1.1 million square feet of built space are office buildings, with mixed-use buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Vornado Realty Trust owned at least 75 commercial properties with 16,621,474 square feet and a city-determined market value of $7 billion. (Market value is typically about 50% of actual value.) The portfolio has $3.9 billion in debt, with top three lenders as JPMorgan Chase, Goldman Sachs, and Deutsche Bank respectively. Within the portfolio, the bulk, or 78 percent of the 16,621,474 square feet of built space are office properties, with retail properties next occupying 13 percent of the space. The bulk, or 96 percent of the built space, is in Manhattan, with Bronx next at 4 percent of the space.

Surrounding

Within a 400-foot radius of 100 West 33rd Street, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was a loan which Rugby Realty Management borrowed $13.5 million from Wells Fargo secured by the 13,489-square-foot, two-unit mixed-use building (K4) on 126 West 34th Street on July 23, 2021.

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