A Vornado Realty Trust-led joint venture has secured an $800 million loan package from Barclays, Goldman Sachs, Citi, and BMO Harris Bank to refinance 650 Madison Avenue, according to Press Release from Vornado. The 28-story office tower spans 595,000 square feet, and consists of a prime retail component with 200 feet of frontage along Madison Avenue between 59th and 60th Streets.
- Financing details: The 10-year, interest-only loan replaces around $800 million in acquisition debt, and carries a fixed rate 3.486 percent.
- Office Tenants include: Ralph Lauren (300,000 square feet), Memorial Sloan-Kettering Cancer Center (100,000 square feet), and Lakewood Capital, while retail tenants include Tod’s, Moncler, and Celine. The building is 97 percent occupied.
- Composition of Joint Venture: Oxford Properties Group, Crown Acquisitions, and Highgate also hold ownership stakes in the property, with Vornado maintaining 20.1 percent.
- Flashback: The joint venture paid $1.3 billion to the Carlyle Group for the office and retail building in 2013. At the time, the retail space represented around 75 percent of the value of the asset.