Andrew Penson’s Argent Ventures is purchasing the senior mortgage on Vornado’s Crowne Plaza Times Square at 1605 Broadway for about $90 million, The Real Deal reported. That represents a 54% decrease from the face value of the loan – $195 million – when Vornado landed a Refi for the 795-room hotel in 2018.
- Previous financing breakdown: Deutsche Bank provided $75 million, Morgan Stanley lent $70 million, and ICBC supplied $50 million. The loan is secured by the partial fee and partial leasehold interest in the property.
- Worth Noting: Vornado’s 46-story hotel includes nearly 200,000 SF of office space and almost 18,000 SF of ground-floor retail, where tenants include Krispy Kreme’s flagship store.
- Vornado recently reduced overhead: In the beginning of the month, the REIT laid off 70 staff members as part of a strategy to save approximately $35 million annually. The cost-reduction strategy is a response to ongoing operational challenges in the company’s portfolio. In the fourth quarter, Vornado expects to see a $23 million reduction in net income due to an estimated severance and other reduction in force related expenses. [TRD+PRNewsWire]