350 Park JV Closes With 1.05M SF Citadel Lease and $3.3B Construction Loan
VNO sits 35% above its 52-week low of $24.57.
Summary
Vornado closed the 350 Park Avenue joint venture with Ken Griffin and Rudin, taking a 36% stake while Griffin's affiliate holds 60% and Rudin 4%. Citadel Enterprise Americas signed a 1.05 million square foot anchor lease, and a $3.3 billion construction loan closed with a seven-bank syndicate including Wells Fargo, JPMorgan, Bank of America, BMO, ING, PNC and Standard Chartered. Construction is underway on the 66-story, 1.9 million square foot Foster + Partners tower, leaving 850,000 SF of high-rise space to lease. This completes the JV announced in August and de-risks the project's financing — the largest single development in Vornado's pipeline now has its anchor tenant and full construction funding locked in. The remaining 850,000 SF of leasing is the next swing factor for the asset's economics.
At the time of this announcement, VNO was trading at $33.11 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $6.2B. The 52-week trading range was $24.57 to $41.60. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.