Vornado Completes Refinancing of Independence Plaza

Rhea-AI Summary

Vornado Realty Trust (NYSE:VNO) has announced the completion of a $675 million refinancing for Independence Plaza, a 1,328-unit residential complex in Manhattan's Tribeca area, through its 50.1% owned joint venture. The new five-year interest-only loan, maturing in June 2030, carries a fixed interest rate of 5.84%. This refinancing replaces the previous $675 million loan that had a 4.25% interest rate and was set to mature in July 2025. The refinancing represents a significant financial transaction for the real estate investment trust, though it comes with a higher interest rate reflecting current market conditions.

Positive

• Successfully secured refinancing for a major residential property asset
• Maintained the same principal amount of $675 million
• Secured a five-year term providing medium-term debt stability

Negative

• New interest rate of 5.84% is significantly higher than the previous 4.25% rate, increasing debt service costs
• Higher interest expenses may impact cash flow and profitability

NEW YORK, June 05, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that its 50.1% owned joint venture has completed a $675 million refinancing of Independence Plaza, a 1,328 unit residential complex in the Tribeca submarket of Manhattan. The five-year interest only loan matures in June 2030 and has a fixed rate of 5.84%. This loan replaces the prior $675 million loan that bore interest at 4.25% and was scheduled to mature in July 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 Independence Plaza refinancing in 2025?

The refinancing is a $675 million five-year interest-only loan with a fixed rate of 5.84%, maturing in June 2030.

How does VNO's new Independence Plaza loan compare to the previous one?

The new loan maintains the same $675 million principal but has a higher interest rate of 5.84% compared to the previous 4.25% rate.

What is Independence Plaza and how much of it does Vornado own?

Independence Plaza is a 1,328-unit residential complex in Manhattan's Tribeca area, owned through a joint venture in which Vornado holds a 50.1% stake.

When does Vornado's new Independence Plaza loan mature?

The new loan matures in June 2030, replacing the previous loan that was scheduled to mature in July 2025.

What type of loan structure did VNO secure for Independence Plaza?

Vornado secured an interest-only loan structure for the full five-year term of the refinancing.