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| Recapitalization and redevelopment of 280 Park Avenue announced 280 Park Avenue equity partners Broadway Partners and Investcorp have executed a recapitalization agreement with mezzanine debt holders SL Green Realty Corp (NYSE: SLG) and Vornado Realty Trust (NYSE: VNO). The transaction merges the parties' respective equity and debt positions to form a new ownership structure for the Class A office property and includes funding for an approximate $150 million repositioning and re-tenanting program. The recapitalization follows the recent formation of a 50/50 joint venture between Vornado and SL Green that combined their debt positions, which totaled $400 million. That joint venture will now hold a significant majority equity stake in the property. Broadway Partners is injecting fresh equity capital to retain an ownership interest and will remain in a co-management role as well. 280 Park Avenue features 1.237 million square feet of prime office space in close proximity to Grand Central Terminal and is widely recognized as one of the area's finest buildings. The new owners will execute a comprehensive redevelopment program to further upgrade all public areas and provide state-of-the-art building infrastructure. The property currently has available a large block of contiguous space, which is an increasingly rare commodity in midtown Manhattan. write your comments about the article :: © 2011 Construction News :: home page |