Alexander’s Completes Restructuring of Retail Loan at 731 Lexington Avenue

Rhea-AI Summary

Alexander’s (NYSE: ALX) restructured the $300 million mortgage on the retail condominium at 731 Lexington Avenue with a new maturity of Dec 23, 2035. The loan was split into a $132.5M senior A-Note at 7.00% and a $167.5M junior C-Note at 4.55%. At closing, an Alexander’s affiliate purchased the $132.5M A-Note at par and also entered a new B-Note to fund capital, re-leasing expenses, and A-Note interest. The B-Note accrues at 13.5% except amounts above $65M used to pay A-Note interest, which accrue at 7.00%. Further details and payment waterfall are in Alexander’s Form 8-K filed Dec 29, 2025.

Positive

• Loan maturity extended to Dec 23, 2035
• Alexander’s affiliate acquired the $132.5M senior A-Note at par
• Structured funding via B-Note for capital and re-leasing expenses

Negative

• High B-Note cost with 13.5% interest on most advances
• Substantial junior tranche of $167.5M remains at 4.55% (subordinate)

News Market Reaction

+0.70%

1 alert

+0.70% News Effect

On the day this news was published, ALX gained 0.70%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Restructured mortgage: $300 million Senior A-Note: $132.5 million at 7.00% interest Junior C-Note: $167.5 million at 4.55% interest +4 more

7 metrics

Restructured mortgage $300 million Loan on 731 Lexington Avenue retail condominium

Senior A-Note $132.5 million at 7.00% interest Current-pay senior tranche after restructuring

Junior C-Note $167.5 million at 4.55% interest Junior tranche after restructuring, interest not paid currently

New maturity December 23, 2035 Extended maturity date for restructured loan

B-Note interest 13.5% per annum On funds for capital, re-leasing, and A-Note interest

A-Note interest carve-out 7.00% per annum On B-Note amounts above $65 million used to pay A-Note interest

Properties owned 5 properties New York City real estate portfolio stated in release

Market Reality Check

Price: $244.90 Vol: Volume 54,946 vs 20-day a...

normal vol

$244.90 Last Close

Volume Volume 54,946 vs 20-day average 61,515 ahead of the restructuring update. normal

Technical Price $218.16 is trading below the 200-day MA at $223.87, and about 16.36% under the 52-week high.

Peers on Argus

Peers show mixed, modest moves: BFS +0.32%, NTST +0.51%, CBL -0.92%, GTY -0.51%,...

Peers show mixed, modest moves: BFS +0.32%, NTST +0.51%, CBL -0.92%, GTY -0.51%, while ALEX is flat. This points to a stock-specific event rather than a broad REIT‑retail sector swing.

Historical Context

5 past events · Latest: Dec 09 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 09	Debt refinancing	Positive	+1.2%	Refinancing of $175M Rego Park II loan at SOFR + 2.00%.
Nov 03	Earnings release	Neutral	+1.6%	Q3 2025 results with lower net income but slightly higher FFO.
Oct 29	Dividend declaration	Positive	-3.4%	Announcement of regular $4.50 quarterly dividend to holders of record.
Oct 21	Earnings call notice	Neutral	-1.8%	Scheduling of Q3 earnings release and Vornado conference call.
Aug 04	Earnings release	Negative	-13.0%	Q2 2025 results showing declines in revenue, FFO, and net income.

Pattern Detected

Recent financing and earnings headlines have generally seen price moves align with the fundamental tone, with one notable divergence on a dividend declaration.

Recent Company History

Over the last few months, Alexander’s focused on refinancing and managing debt maturities while reporting softer fundamentals. A $175 million Rego Park II refinancing on Dec 9, 2025 modestly lifted the stock. Q3 and Q2 2025 results showed lower net income and FFO versus prior-year periods, drawing negative reactions, especially after the Q2 release. A regular $4.50 quarterly dividend on Oct 29, 2025 coincided with a price decline. Today’s 731 Lexington Avenue loan restructuring extends that ongoing balance-sheet and property-specific work highlighted in recent 10-Q and 8-K filings.

Market Pulse Summary

This announcement details a comprehensive restructuring of the $300 million mortgage on the 731 Lexi...

Analysis

This announcement details a comprehensive restructuring of the $300 million mortgage on the 731 Lexington Avenue retail condominium, splitting it into senior and junior tranches and adding a higher‑yielding B‑Note, all maturing on December 23, 2035. It follows recent refinancing at Rego Park II and occurs against a backdrop of softer earnings and tenant transitions highlighted in prior 10‑Q filings. Investors may watch leasing progress at 731 Lexington, interest expense trends, and future 8‑K disclosures to assess how this structure affects long‑term cash flows and risk.

Key Terms

mortgage loan, senior "A-Note", B-Note, Form 8-K, +2 more

6 terms

mortgage loan financial

"it has restructured the $300 million mortgage loan on the retail condominium"

A mortgage loan is a long-term loan used to buy or refinance real estate, where the property itself serves as the lender’s assurance that the debt will be repaid; if the borrower stops paying, the lender can take the property. It matters to investors because mortgages shape bank and investor income, influence housing prices and consumer spending, and carry credit and interest-rate risk—think of it as a long-term IOU tied directly to a house.

senior "A-Note" financial

"split into a $132.5 million senior “A-Note” accruing current interest at 7.00%"

A senior “A-note” is a high-priority debt security in a structured financing deal or loan stack that gets paid back before lower-ranked tranches. Think of it as the person first in line for repayment: it carries lower risk and usually offers a lower interest rate than subordinated pieces, so investors buy it when they want more protection of principal and steadier income rather than higher, riskier returns.

B-Note financial

"also entered into a new “B-Note” with the borrower, pursuant to which funds"

A B-note is the subordinate piece of a loan or debt package that carries greater risk and usually a higher interest rate than the senior portion. Think of a mortgage sliced into two stacks: the top stack gets paid first and is safer, while the B-note is the lower stack that absorbs losses first but pays more if things go well. Investors watch B-notes because their performance signals credit stress and can boost yield — but they also expose holders to bigger potential losses in a default.

Form 8-K regulatory

"can be found in the Current Report on Form 8-K filed today by Alexander’s"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

forward-looking statements regulatory

"Certain statements contained herein constitute forward-looking statements as such term is defined"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

safe harbor regulatory

"protection of the safe harbor for forward-looking statements contained in the"

Safe harbor is a rule that protects companies or individuals from legal trouble if they follow certain guidelines or procedures. It’s like having a safety net that allows them to act without fear of punishment, as long as they stick to the rules. This helps encourage honest behavior and clear standards in financial and legal activities.

AI-generated analysis. Not financial advice.

PARAMUS, N.J., Dec. 29, 2025 (GLOBE NEWSWIRE) -- Alexander’s, Inc. (NYSE: ALX) today announced that it has restructured the $300 million mortgage loan on the retail condominium of 731 Lexington Avenue in Manhattan. Under the terms of the restructuring, the existing loan was split into a $132.5 million senior “A-Note” accruing current interest at 7.00% per annum and a $167.5 million junior “C-Note” accruing interest at 4.55% per annum, with a new maturity date of December 23, 2035.

At the closing of the restructuring, an affiliate of Alexander’s purchased the $132.5 million senior A-Note from the existing lenders at par. The Alexander’s affiliate also entered into a new “B-Note” with the borrower, pursuant to which funds that are loaned to the borrower, for capital and re-leasing expenses, and to fund interest on the A-Note, accrue interest at 13.5% per annum, except for loan amounts above $65 million used to pay interest on the A-Note, which accrue at 7.00%.

Additional information regarding the terms of the restructuring and the payment waterfall can be found in the Current Report on Form 8-K filed today by Alexander’s, available at https://www.alx-inc.com/financial-information/sec-filings.

Alexander’s, Inc. is a real estate investment trust that has five properties in New York City.

CONTACT:
GARY HANSEN
(201) 587-8541

Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. Currently, some of the factors are interest rate fluctuations and the effects of inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see "Item 1A. Risk Factors" in Part I of our Annual Report on Form 10-K for the year ended December 31, 2024. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.

FAQ

What did Alexander’s (ALX) announce about the 731 Lexington mortgage on Dec 29, 2025?

Alexander’s restructured the $300M mortgage, splitting it into a $132.5M senior A-Note and a $167.5M junior C-Note with maturity Dec 23, 2035.

How much did Alexander’s affiliate pay for the A-Note in the 731 Lexington restructuring?

An Alexander’s affiliate purchased the $132.5M senior A-Note from existing lenders at par.

What interest rates apply to the new loan tranches for 731 Lexington Avenue (ALX)?

The A-Note accrues at 7.00%, the C-Note at 4.55%, and the new B-Note generally accrues at 13.5% with amounts over $65M used to pay A-Note interest at 7.00%.

When does the restructured loan for 731 Lexington Avenue mature for ALX?

The restructured mortgage has a new maturity date of December 23, 2035.

What is the purpose of the B-Note issued in the Alexander’s restructuring at 731 Lexington?

The B-Note provides funds for capital and re-leasing expenses and to fund interest on the A-Note under specified accrual terms.