Vornado signs $700M refi with Morgan Stanley, others, for office building in Greenwich Village

Vornado Realty Trust through the entity 770 Broadway Owner LLC as borrower signed a loan with lenders Morgan Stanley, Bank of China, ING Capital and Landesbank Baden-Wurttemberg valued at $700 million for the office building (O6) at 770 Broadway in Greenwich Village, Manhattan. This refinances a $700 million loan given in 2016.
The deal closed on June 27, 2022 and was recorded on July 11, 2022. The property has 940,000 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $744 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.)

Prior sales and revenue

The 940,000-square-foot property generated revenue of $97.7 million or $104 per square foot, according to the most recent income and expense figures.

The property

The 770 Broadway parcel has frontage of 188 feet and is 327 feet deep with a total lot size of 62,582 square feet. The lot is irregular. The zoning is C6-2 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential. The property is in the NoHo Historic District. The city-designated market value for the property in 2022 is $404.2 million.

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 $1,385 in OATH penalties in the last year.

The neighborhood

In Greenwich Village, the bulk, or 36 percent of the 32.8 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 19 percent of the space. In sales, Greenwich Village has the 8th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, Greenwich Village has had very little major development activity relative to other neighborhoods.It had 658,420 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the two commercial properties representing 940,000 square feet of the 1,325,831 square feet. The identified owner is Vornado Realty Trust. There are no active new building construction projects on this tax block.

All properties are office.

Surrounding

Within a 400-foot radius of 770 Broadway, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
One of those five items was a sale which Select Garages bought one condo unit in the 19,555-square-foot, 216-unit mixed-use building (RM) on 60 East 9th Street and two other properties for $16.2 million from Zucker Organization on October 28, 2021.
Of those five items, four were loans above $5 million totaling $72.2 million. The most recent of the four was Alan Manocherian which borrowed $40 million from Bank of New York Mellon secured by the 147,773-square-foot, 180-unit rental (D5) on 752 Broadway on December 17, 2021.

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