Benzinga | Jul 20, 2021 04:58PM EDT

Vornado Says To Increase Its Ownership Interest In One Park Avenue To 100%; Says Purchase Price Values Property At $875M

Vornado Realty Trust (NYSE:VNO) announced today that, pursuant to a right of first offer, it has agreed to acquire Canada Pension Plan Investment Board's ("CPP Investments") 45% interest in One Park Avenue, increasing Vornado's ownership interest to 100%. The purchase price values the property at $875 million. The consideration to CPP Investments is approximately $158 million in cash plus Vornado is assuming CPP Investments' share of the existing debt. The property is currently encumbered by $525 million of debt, which bears interest at a rate of LIBOR plus 1.11% (currently 1.20%) and matures in March 2026, as fully extended.



One Park Avenue is a 943,000 square foot Manhattan office building that is 67% leased to New York University (S&P: AA-) through May 2050. Vornado originally acquired an interest in the property in March 2011 at a $394 million valuation and recapitalized the property with CPP Investments in June 2014 at a $560 million valuation.

The purchase is expected to close in the third quarter of 2021, subject to customary closing conditions.

Vornado Realty Trust is a fully-integrated equity real estate investment trust.