German American Capital grants loan for Bloomberg tower – Brief Article
Elaine Misonzhnik
Last week, German American Capital Corporation placed a $400 million loan on the Bloomberg Tower, a high-profile mixed-use project being developed by Vornado Realty on the former Alexander’s site.
The loan, $253 million of which was used to repay the company’s outstanding construction loan with Hypo Real Estate Capital, will cover the cost of the project’s completion.
According to Vornado, the new loan features a 5.33% rate, a 10-year term and a 25-year amortization schedule. The arrangement means that the tower (reported to cost approximately $650 million) will no longer be held as collateral.
The Bloomberg Tower, located a 731 Lexington Ave., will be a 1.4 million s/f office building, containing 900,000 s/f of office space, 100 residential condos and two retail floors. Back in 2001, Bloomberg Inc. pre-leased 700,000 s/f at the building. Newmark & Co. is serving as the exclusive leasing agent for the remainder of the space.
The Bloomberg Tower is expected to be completed by May of 2004.
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