Vornado takes $200M loan on GM building.The General Motors building made news again last week, when it was announced that Vornado Realty Trust Vornado Realty Trust (NYSE: VNO) is a New York based real estate investment trust. It is the inheritor of real estate formerly controlled by companies including Two Guys and Alexander's. , a company that holds a partial interest in the building, has taken out a $200 million mezzanine loan A mezzanine loan is a relatively large loan, typically unsecured (ie., not backed by a pledging of assets) or with a deeply subordinated security structure (e.g., third lien on the property but non-recourse vis-a-vis the borrower). on the property. Though Vornado officials refused to comment on the transaction, the loan was most likely the result of Macklowe Properties' recent purchase of the 50-story building at 767 Fifth Ave.. The purchase brought in a legendary price of $1.4 billion and gave way to speculations Speculations is an online resource for writers who wish to break into or increase their presence within the science fiction, fantasy, or other speculative fiction subgenres. Speculations has been a Hugo Award nominee seven times. The website is maintained by Kent Brewster. about what Harry Macklowe plans to do with the property. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Larry Feldman, president and COO of Feldman Equities, a financing company, if any building was the perfect candidate for a mezzanine loan, the GM would be it. "The building just went up in value, it has a list of stable tenants and it has a very high cash flow," he said. "The returns on that should be phenomenal." The loan featured an 8.685% rate over LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). and a two-year term, with possible extensions. |
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