Vornado Completes $450 Million Refinancing of PENN 11

Rhea-AI Summary

Vornado Realty Trust (NYSE:VNO) has successfully completed a $450 million refinancing of PENN 11, a 1.2 million square foot Manhattan office building in THE PENN DISTRICT. The new five-year interest-only loan will mature in August 2030 with a fixed rate of 6.35%.

The company paid down $50 million of the previous $500 million loan, which had an interest rate of SOFR plus 2.06% (swapped to a fixed rate of 6.28%) and was set to mature in October 2025.

Positive

• Successful refinancing of $450 million secured for PENN 11 property
• Extended debt maturity from 2025 to 2030, improving financial stability
• Reduced total debt by $50 million through loan paydown

Negative

• New loan carries slightly higher fixed interest rate of 6.35% compared to previous 6.28%

NEW YORK, July 16, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that it has completed a $450 million refinancing of PENN 11, a 1.2 million square foot Manhattan office building located in THE PENN DISTRICT. The five-year interest only loan matures in August 2030 and has a fixed rate of 6.35%.

Vornado paid down by $50 million the prior $500 million loan that bore interest at a rate of SOFR plus 2.06% (swapped to fixed at an all-in rate of 6.28%) and was scheduled to mature in October 2025.

Vornado Realty Trust is a fully-integrated equity real estate investment trust.

CONTACT

Thomas J. Sanelli
(212) 894-7000

Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2024. 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.

FAQ

What are the terms of Vornado's (NYSE:VNO) new PENN 11 refinancing?

The new refinancing is a $450 million, five-year interest-only loan with a fixed rate of 6.35%, maturing in August 2030.

How much did Vornado (VNO) reduce its debt in the PENN 11 refinancing?

Vornado paid down $50 million from the previous $500 million loan, reducing the new refinancing to $450 million.

What is the interest rate difference between Vornado's new and old PENN 11 loans?

The new loan has a fixed rate of 6.35%, slightly higher than the previous loan's all-in fixed rate of 6.28%.

When does Vornado's (VNO) new PENN 11 loan mature?

The new loan matures in August 2030, extended from the previous loan's October 2025 maturity date.

What is the size of Vornado's PENN 11 property?

PENN 11 is a 1.2 million square foot Manhattan office building located in THE PENN DISTRICT.