**Vornado Completes $450M Refinancing of Times Square Retail Property**
Vornado Realty Trust has announced the successful completion of a $450 million refinancing deal for 1535 Broadway, a flagship retail property located in the heart of Times Square. The transaction was executed through a joint venture in which Vornado holds a 52% stake.
The interest-only, non-recourse commercial mortgage-backed securities (CMBS) loan carries a fixed interest rate of 6.90% and is set to mature in May 2030.
The retail space at 1535 Broadway spans approximately 107,000 square feet and features a prominent six-story 4K LED billboard. This property is part of a high-profile retail portfolio encompassing assets on Upper Fifth Avenue and in Times Square, jointly owned by Vornado and Crown Acquisitions. Notably, the Marriott Marquis hotel, consisting of 1,971 rooms located on the upper floors of 1535 Broadway, is not included in this retail portfolio.
Following transaction-related costs and reserves, $407 million of the net proceeds from the refinancing were allocated to partially redeem Vornado’s Retail JV preferred equity. Among the lenders involved in the financing were Goldman Sachs, Bank of America, and Bank of Montreal, according to sources from the rating agencies.
