New York-based Vornado Realty Trust announced that it completed a $300 million recourse financing of 7 West 34th Street with a loan provided by Metropolitan Life Insurance Co. Vornado also announced that it has sold a 47% interest in the property to Korea Post, a sovereign wealth fund under the national postal service of South Korea, at a value of $561 million or $1,176 per square foot. Vornado originally purchased the 12-story office building in October 2000 for approximately $128 million from HRPT Properties Trust, which purchased it from Devon Properties in October 1997 for $110 million.
Built in 1910 and once home to Ohrbach's Department Store, the 477,000 square foot Manhattan office building in the Penn Plaza District sits across the street from the Empire State Building and is fully leased to Amazon in a 17-year contract signed in November 2014, with three five-year lease options that could stretch the lease until 2047. Vornado made significant capital improvements to the property in recent years, enlisted the architecture firm MdeAS — best known for its redesign of the GM Building's public plaza — to transform the lobby, and included upgraded elevators, new restrooms and a large outdoor terrace. Vornado will continue to own a 53% interest and continue to manage and lease the property.
For more news and information visit Blumberg Partners.
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