**Vornado Realty Trust Completes $450M Refinance of Midtown’s PENN 11**
Vornado Realty Trust has successfully completed a $450 million refinancing of PENN 11, a 1.2-million-square-foot office building situated in Midtown Manhattan’s Penn District. The new five-year, interest-only loan carries a fixed interest rate of 6.35% and matures in August 2030.
As part of the refinancing, Vornado paid down $50 million from the previous $500 million loan, which had borne interest at SOFR plus 2.06%, swapped to a fixed rate of 6.28%. That loan was originally set to mature in October 2025.
Equity analysts at Zacks Research remarked that the refinancing provides Vornado with improved financial flexibility. The extended debt maturity is expected to enhance the company’s liquidity and strengthen its balance sheet, allowing for more efficient day-to-day operations. Zacks also noted that Vornado’s stock has risen 13.8% over the past three months, outperforming the broader industry’s 3.2% growth in the same period.
Originally opened in 1923 as the Equitable Life Assurance Building, PENN 11 now serves as the New York headquarters for both Macy’s and AMC Networks.
