Vornado Realty Trust reported that a joint venture in which it holds a 45.1% interest has refinanced 61 Ninth Ave., an office and retail property located in the Meatpacking District, with a new $161 million loan. The building totals 194,000 square feet and is fully leased to Aetna and Starbucks, according to the company. The financing is structured as an interest-only facility and, assuming all extension options are exercised, is scheduled to mature in March 2029.
The new loan features a floating-rate structure tied to SOFR, with a step-up spread over the term. For the first year, the interest rate is set at SOFR plus 3.00%. In the second year, the spread increases to SOFR plus 3.35%, and for the balance of the term, the loan will accrue interest at SOFR plus 3.85%. The interest-only profile indicates that no scheduled principal amortization is required during the life of the financing.
This refinancing replaces a prior $155 million loan on 61 Ninth Ave. that carried a lower spread of SOFR plus 2.45%. The previous loan had been scheduled to mature in November 2026. By closing the new $161 million facility, the joint venture has effectively addressed that upcoming maturity and extended its debt profile on the asset by several years beyond the earlier 2026 due date.
Earlier in the year, Vornado also adjusted another piece of the joint venture’s capital structure. The company disclosed that it entered into a seven-month extension on a separate $167.5 million loan that the joint venture originally secured in 2019. In conjunction with that extension, the loan balance was paid down by $12.5 million. No further details on that facility or its collateral were provided in the announcement.
61 Ninth Ave. was designed by Rafael Vinoly Architects and is positioned among several high-profile destinations in the Meatpacking District. The property sits next to Apple’s Meatpacking Flagship Store and opposite both Chelsea Market and Google’s New York headquarters. The combination of institutional office tenancy from Aetna, retail presence from Starbucks, and adjacency to major tech and retail anchors underscores the property’s role within this established urban corridor.
With the new interest-only, SOFR-based loan now in place at 61 Ninth Ave., the Vornado joint venture has locked in a longer-term refinancing while accepting a higher credit spread relative to the prior financing. The transaction highlights how existing borrowers are reworking capital stacks ahead of approaching maturities, particularly at well-leased, mixed-use office properties in dense urban districts.
