Vornado JV Closes on $675M Refi for Luxury Manhattan Community
The owners are planning to build a 900-unit expansion to the property.
Vornado Realty Trust and Stellar Management have completed the $675 million refinancing of Independence Plaza, a 1,328-unit luxury residential property in the Manhattan’s Tribeca submarket. The former holds a 50.1 percent interest in the asset.
The CMBS note replaces a previous $675 million loan issued in 2018 by co-funders Goldman Sachs, Bank of America and Deutsche Bank that was scheduled to mature in July. The five-year financing has a fixed rate of 5.84 percent and will mature in June 2030.
The property’s value has dropped 11 percent since 2018, to $1.2 billion, partly due to the financial challenges of managing rent-regulated units, which make up 40 percent of the community, Crain’s New York Business reported.
Vornado and Stellar plan to expand Independence Plaza with a 940-foot tower, which will enclose approximately 900 apartments, Crain’s also wrote. The project is currently on hold due to recent zoning changes under the City of Yes initiative.
A 1,328-unit community in Tribeca
Completed in 1975, Independence Plaza is at 310 Greenwich St., 40 Harrison St. and 80 N. Moore. The community comprises three buildings, the tallest one rising 39 stories, and a cluster of nine townhouses designed in the 19th century fashion. The property also includes 55,000 square feet of retail.
Apartments have studio, one-, two- and three-bedroom layouts ranging from 525 to 1,010 square feet, according to Yardi Matrix information. Shared amenities include a fitness center, a swimming pool, a children’s playroom, laundry facilities and an on-site grocery store.
The 4-acre property is just off New York 9A, adjacent to Washington Market Park and overlooking the Hudson River. Several subway stations are also nearby.
Earlier this week, another multifamily property in Manhattan became the subject of a substantial refinancing loan. Rockrose Development secured a 10-year, $80 million note from AXA IM Alts for a 152-unit community located 2 miles north of Independence Plaza.
