**Vornado Realty Trust Completes $450M Refinancing of Midtown Manhattan’s PENN 11**
Vornado Realty Trust has successfully completed a $450 million refinancing of PENN 11, a 1.2-million-square-foot office building located in Midtown Manhattan’s revitalized Penn District. The new five-year, interest-only loan carries a fixed interest rate of 6.35% and is set to mature in August 2030.
As part of the refinancing deal, Vornado paid down $50 million from its previous $500 million loan, which bore interest at a rate of SOFR plus 2.06% and had been swapped to a fixed all-in rate of 6.28%. That previous mortgage was originally scheduled to mature in October 2025.
According to Zacks Equity Research, this refinancing improves Vornado’s financial flexibility, enhances its debt maturity profile, and increases liquidity for operational needs. Over the past three months, Vornado’s shares have risen by 13.8%, significantly outperforming the industry’s 3.2% gain during the same period.
PENN 11, originally opened in 1923 as the Equitable Life Assurance Building, is a historical landmark that today serves as the New York City headquarters for both Macy’s and AMC Networks. The property is a core asset within Vornado’s Penn District redevelopment initiative, which aims to elevate the area into a top-tier office destination.
