New York-based Vornado Realty Trust is paying more than $150 million for a majority stake in the 1 Park Avenue tower in New York, Bloomberg reports. Owner MurrayHill Properties, which has $375 million of senior debt, will remain the building’s minority partner after the deal.
Murray Hill acquired the property for $550 million in 2007, in partnership with Blackacre Institutional Capital Management, an investment arm of Cerberus Capital Management. Cash flow of the building, which paid only 98% of its debt service in 2010, may improve as its tenant NYU LangoneMedical Center is in talks to expand.
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