All articles tagged with #vornado realty trust
Citadel founder Ken Griffin, along with developers Vornado Realty Trust and Rudin, has filed plans with New York City for a 62-story office tower at 350 Park Ave, marking a significant step forward in their efforts to build a 1.8 million-square-foot skyscraper on Manhattan's Park Avenue.
Donald Trump faces a $355 million court-ordered penalty for inflating his net worth, and his 30% stake in the NYC office building at 1290 Sixth Avenue could be his ticket to pay it off. The building, not bearing his name, could be worth $600 million before debt, and selling it to Vornado Realty Trust, the majority owner, seems plausible. His other asset, 40 Wall Street, is in need of significant upgrades and may fetch between $250 million and $300 million. However, his Manhattan assets are not as extensive as commonly believed, with most of his "empire" consisting of individual condo units and retail spaces.
New York Governor Kathy Hochul announced that the $7 billion overhaul of Penn Station will proceed with or without the development of office towers that were supposed to help pay for the project. Hochul severed ties with the development plan that her predecessor, Andrew Cuomo, had worked out with Vornado Realty Trust, acknowledging that the pandemic had erased demand for more office space in Midtown Manhattan. The renovation of Penn Station is a pressing goal, and the design process will entertain all concepts for how to improve the station.
Fitch downgraded the security linked to the mortgage at 650 Madison Ave, co-owned by Vornado Realty Trust, due to a 38% drop in rental income and occupancy falling to 82%. The building's fortunes are hitched to Ralph Lauren, an anchor tenant whose lease expires at the end of 2024. Ralph Lauren may further downsize or even vacate 650 Madison next year. The building's loan-to-value ratio has risen to 127% from 106% in 2019, reflecting falling cash flows. Fitch lowered its outlook for US real estate investment trusts to "deteriorating" from "neutral."
Despite a virtual standstill in the sales market for office properties, New York-based REITs SL Green and Vornado Realty Trust are planning large-scale asset sales this year to raise cash and buy back shares. SL Green is looking to achieve the largest single-year debt reduction in the company’s history and to buy back its stock, while Vornado will look to sell a mix of retail and office assets to fund its share buyback program. Both companies are under pressure to shore up their balance sheets as their stock prices plummet and debt costs mount.
Donald Trump's interest expenses on his 30% stake in the 555 California Street office complex in San Francisco have soared due to inflation, costing him an estimated $21 million annually. Trump's partner, Vornado Realty Trust, locked in a fixed rate on their portion of the $1.2 billion loan, while Trump's interest rate fluctuated. The former president's failure to properly assess the risk of inflation has resulted in his business paying an estimated $51 million in interest across all properties this year, 30% more than the year he left the White House.