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Vornado Raises Loan for 220 Central Park South to $950M

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Vornado Realty TrustVNO recently expanded the loan facility for development of 220 Central Park South by $350 million to $950 million. The additional loan facility will help the New York-based real estate investment trust ("REIT") to construct the site in a better way so as to meet the requirement of its tenants.

Notably, on Feb 3, 2014, Vornado had closed a $600-million loan for the development site at 220 Central Park South. Interest on the loan was set at London inter bank offered rate ("Libor") plus 2.75%. Further, the loan was slated to mature in Jan 2016 with three one-year extension options.

In the latest arrangement, however, not only the loan amount has been raised, but the date of maturity has also been extended to 2020. The rate of interest on this new loan facility has been set at Libor plus 2%. The REIT has selected Bank of China as the lender.

Vornado is the owner and manager of commercial real estate in the U.S., with a portfolio mainly located across the New York City and Washington D.C. areas.

Vornado currently has a Zacks Rank #2 (Buy). Investors interested in the REIT industry may consider stocks like CoreSite Realty Corporation COR , Iron Mountain Incorporated IRM and Ashford Hospitality Prime, Inc. AHP . While both CoreSite Realty and Iron Mountain Incorporated sport a Zacks Rank #1 (Strong Buy), Ashford Hospitality holds the same Zacks Rank as Vornado.

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IRON MOUNTAIN (IRM): Free Stock Analysis Report

VORNADO RLTY TR (VNO): Free Stock Analysis Report

CORESITE REALTY (COR): Free Stock Analysis Report

ASHFORD HOSP PR (AHP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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