Vornado Realty Trust has formed a joint venture with an affiliate of the Kushner Companies to recapitalize the office portion of 666 Fifth Avenue, a 39-story, 1.45-million-sq-ft. class-A office building located on the full block front of Fifth Avenue between 52nd and 53rd Street. Vornado has acquired a 49.5 percent interest in the property from the Kushner Companies, the current owner.
In connection therewith, the existing $1.215 billion mortgage loan has been modified into a $1.1 billion A-Note and a $115 million B-Note and extended to February 2019; and a portion of the current pay interest has been deferred to the B-Note.
Vornado ($80 million) and the Kushner Companies ($30 million) have committed to lend the joint venture $110 million for tenant improvements and working capital for the property, which loan will be senior to the B-Note.
It is the second major transaction involving 666 Fifth Avenue this year. In May, Spanish firm Inditex, the parent company of retailer Zara, agreed to pay $324 million to buy a 38,750-square-foot retail condo in the building.
