Vornado Realty Trust is making another bold move. They just took a 49.5% stake of 666 Fifth Avenue for an $80 Million dollar injection. Jonathan Mechanic, Chairman of Fried Frank, arranged what is probably one of the most complicated, and largest, restructuring deals ever done. With working capital, and Vornado taking over the leasing, it will be possible to do deals in this building for the first time in many months. Recently, the space has been listed as 'not available, a placeholder for absorption.'
Kushner Cos. had purchased the tower for a record setting price of $1.8 Billion in January of 2007. It was a dizzying price considering the building had been purchased by a partnership consisting of Tishman Speyer and TMW back in 2000 for $518 million. The aggressive offer put Jared Kushner, who was 26 at the time, firmly on the map of real estate players in New York.
When purchased, the existing rents did not cover the debt service, and the building had a $5 million a month shortfall. The debt went into the hands of LNR Property Corp, a special servicer in which Vornado has a partial interest, last year.
The capital infusion which will be used to fund deals (tenant improvement allowance, etc..) will make it possible for Vornado to command strong rents and aggressively lease the nearly 300,000 square feet of available space in the building.
Tower floors are available in the building and boast terrific views and light. Great for high end financial services Tenants, trading space, conventional office, or boutique investment banks.
Kushner Cos. had purchased the tower for a record setting price of $1.8 Billion in January of 2007. It was a dizzying price considering the building had been purchased by a partnership consisting of Tishman Speyer and TMW back in 2000 for $518 million. The aggressive offer put Jared Kushner, who was 26 at the time, firmly on the map of real estate players in New York.
When purchased, the existing rents did not cover the debt service, and the building had a $5 million a month shortfall. The debt went into the hands of LNR Property Corp, a special servicer in which Vornado has a partial interest, last year.
The capital infusion which will be used to fund deals (tenant improvement allowance, etc..) will make it possible for Vornado to command strong rents and aggressively lease the nearly 300,000 square feet of available space in the building.
Tower floors are available in the building and boast terrific views and light. Great for high end financial services Tenants, trading space, conventional office, or boutique investment banks.
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| Representative floor plan of a tower floor - approximately 24,500 rentable square feet. |
