Commercial REIT Vornado Realty Trust has acquired a 49.5% stake in 666 Fifth Ave., a 39-story office building in Manhattan, from the Kushner Cos.
As a result of the deal, the parties have modified and extended the existing mortgage on the property, plus provided additional financing for improvements and working capital.
The $1.215 billion mortgage has been split into a $1.1 billion A-Note and a $115 million B-Note, with a portion of the current pay interest deferred to the B-Note. The loan will now be due in February 2019.
In addition, Vornado is lending $80 million and Kushner $30 million to their joint venture to provide funds for tenant improvements and working capital. This loan is senior to the B-Note.
A request for further details on the existing mortgage was not returned by press time.
