Vornado Completes $250 Million Refinancing for Amazon-Leased Manhattan Office Tower
New York, Monday, 26 January 2026.
Vornado secures a $250 million non-recourse loan for its Amazon-leased Manhattan hub. The strategic move pays down debt and locks in a 5.79% fixed rate through 2031.
De-risking the Balance Sheet
On January 26, 2026, Vornado Realty Trust (NYSE:VNO) announced that its 53%-owned joint venture successfully completed a $250 million refinancing of 7 West 34th Street [1]. This transaction replaces a previous financial obligation with a new structure designed to optimize the company’s liability profile. The newly originated loan is a five-year, interest-only facility carrying a fixed rate of 5.79% and is scheduled to mature in February 2031 [1][2]. A critical component of this deal is its non-recourse nature, which isolates the financial liability to the property itself rather than Vornado’s broader balance sheet [1][2].
Strategic Debt Management
The refinancing strategy involved a capital repayment to reduce the asset’s leverage. The joint venture paid down $50 million of the prior $300 million loan, which was fully recourse to Vornado [1][2]. The previous debt bore a lower interest rate of 3.65% and was approaching a maturity date of June 2026 [1][2]. While the new rate represents an increase of 2.14 percentage points in the current interest rate environment, the transaction successfully removes the recourse obligation and extends the maturity runway by nearly five years [1][2].
Asset Profile and Recent Activity
The collateral for this loan, 7 West 34th Street, is a Class A office building in Manhattan encompassing 477,000 square feet (approximately 44,368 square meters) [1][2]. The property’s income stream is secured by a high-profile tenant, with Amazon leasing the entirety of the building’s office space [1][2]. This announcement caps a busy month for Vornado; earlier on January 7, 2026, the trust priced $500 million in 5.75% senior notes due 2033 and extended its revolving credit facilities to over $2.0 billion, demonstrating a concerted effort to manage liquidity and debt maturities early in the fiscal year [2].