Vornado Locks In $120 Million 10-Year Fixed-Rate Loan for 4 Union Square South
The 5.64 percent interest-only note replaces a SOFR-linked loan due in weeks, capping borrowing costs as Manhattan retail rents rise.
Overview
- Vornado secured a $120 million refinancing for 4 Union Square South through a private lender, featuring a 10-year, interest-only loan at a fixed 5.64 percent rate.
- Proceeds retire the existing Wells Fargo loan issued in 2018 that carried a SOFR plus 1.50 percent rate, which stood at about 5.85 percent as of August 11.
- By replacing variable‐rate debt with a fixed‐rate obligation, Vornado shields the property from future benchmark rate increases.
- The six‐story, 204,000-square-foot retail center is anchored by national tenants including Whole Foods, DSW, Burlington, Sephora and Five Below.
- CBRE data show Manhattan average retail asking rents rose to roughly $670 per square foot in June, highlighting steady second-quarter market momentum.