Vornado Secures $273M Loan to Refinance Warner Building

Vornado Realty Trust, the New York-based equity real estate investment trust, announced that it has completed a $273 million refinancing of The Warner Building in Washington, DC. The seven year loan provided by TIAA-CREF has a fixed rate of 3.65%, a step away from the previous 6.26%/$293 million mortgage on the office building that was set to mature on May 12. Washington Business Journal reported in April that Vornado faced the prospect of defaulting on its previous loan, which had been transferred to special servicer LNR Partners Inc., according to debt monitoring firms Fitch Ratings and Trepp LLC. The building is owned by a joint venture between Vornado Realty Trust, controlling 55%, while Canada Pension Plan Investment Board controls the remaining 45%.

Located at 1299 Pennsylvania Avenue, the 621,000 square foot office building was built in 1993, renovated in 2012, and sits just three blocks from the White House and overlooks Freedom Plaza. Designed by Pei Cobb Freed & Partners, The Warner Building features a dramatic sky-lit interior atria, a rooftop terrace, fitness center and 24 hour on-site security. The property is currently 88% leased, with major tenants including General Electric, Facebook, Hewlett Packard and APCO Worldwide, with ground floor retail tenants including Au Bon Pain and the Warner Theatre.

For more news and information visit Blumberg Partners.

JV Investing up to £200M in London's West End

A joint venture between Grosvenor Fund Management and the Canada Pension Plan Investment Board (CPPIB) has formed this summer to invest up to £200 million in London's West End office market over the next two years according to a Benefits Canada article. Grosvenor will invest £10 million and lead asset sourcing and management activities while CPPIB will invest the remaining £190 million.

Wenzel Hoberg, Canada Pension Plan Investment Board's managing director and head of European real estate investments, said, "This venture with Grosvenor Fund Management provides us with an entry into an attractive, niche commercial real estate market in West End London. This investment aligns with our existing European real estate investment strategy and introduces us to a well-respected partner in Grosvenor Fund Management, which has a unique knowledge of the West End office market and strong active management and refurbishment expertise."

Mervyn Howard, Director Grosvenor Fund Management, said: "We are delighted to have formed this venture with CPPIB who share our belief in the future strength of the central London office market. Grosvenor and Grosvenor Fund Management have been active in the London office market through many cycles. We have the in-house skills to execute the strategy of the Partnership and believe the timing is right."

For more news and information visit Blumberg Capital Partners.

CPPIB Invests $91M in DC Market

The Canada Pension Plan Investment Board (CPPIB) announced a joint venture with Vornado Realty Trust wherein CPPIB acquired a 45% ownership interest in two Washington, DC properties for $91 million according to a CoStar report. CPPIB made an equity investment to assume 45% of the existing mortgage indebtedness for 1299 Pennsylvania Avenue (the Warner Building) and 1101 17th Street NW, two prime office properties in Washington D.C. owned by Vornado. Vornado Realty Trust said, "We are pleased to have CPPIB, one of the world’s most prominent institutional real estate investors, as a new partner in these two buildings. Like us, they primarily focus on top quality properties in major U.S. cities."

The Warner Building, is a 13-story class A office building with over 600,000 square feet of space located some three blocks east of the White House. The building also includes the historic Warner Theatre, a 1,850-seat theatre that has been restored to its original grandeur. 1101 17th Street NW is a 13-story office building containing over 200,000 square feet on the North East corner of L Street and 17th Street NW in Washington’s commercial/business district.

For more news and information visit Blumberg Capital Partners.