Vornado’s Retail JV Completes $450 Million Financing of 1535 Broadway

Rhea-AI Summary

Vornado Realty Trust (NYSE:VNO) has announced the completion of a $450 million financing for 1535 Broadway, a premier Times Square retail destination featuring full blockfront 4K LED signage. The property is owned through Vornado's 52% owned street retail joint venture.

The financing terms include:

• Interest-only, non-recourse loan
• Fixed interest rate of 6.90%
• Maturity in May 2030

After accounting for transaction costs and reserves, $407 million of the net proceeds were utilized to partially redeem Vornado's Retail JV preferred equity.

Positive

• Secured substantial $450M financing for prime Times Square retail property
• Non-recourse loan structure limits company's liability
• Long-term financing secured until 2030 provides stability
• Partial redemption of preferred equity may improve capital structure

Negative

• High fixed interest rate of 6.90% in current market conditions
• Only $407M available after costs, indicating significant transaction expenses

NEW YORK, April 14, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that its 52% owned street retail joint venture has completed a $450 million financing of 1535 Broadway, a premier Times Square retail destination with full blockfront 4K LED signage. The interest only, non–recourse loan carries a fixed rate of 6.90% and matures in May 2030.

After transaction costs and reserves, $407 million of the net proceeds from the financing were used to partially redeem Vornado’s Retail JV preferred equity.

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 the increased interest rates and 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 key terms of VNO's new $450 million financing for 1535 Broadway?

The financing is an interest-only, non-recourse loan with a 6.90% fixed rate, maturing in May 2030.

How much of the 1535 Broadway property does Vornado (VNO) own?

Vornado owns 52% of the street retail joint venture that controls the property.

How will VNO use the proceeds from the 1535 Broadway financing?

$407 million of the net proceeds will be used to partially redeem Vornado's Retail JV preferred equity.

What type of property is VNO's 1535 Broadway in Times Square?

It's a premier retail destination featuring full blockfront 4K LED signage in Times Square.