Vornado Realty Trust said on Monday it has completed a $1.2 billion refinancing of 555 California Street, a three building 1.8 million square foot trophy office campus in San Francisco.
The interest only loan bears a rate of LIBOR plus 1.93% in years one through five, LIBOR plus 2.18% in year six and LIBOR plus 2.43% in year seven. The loan matures in May 2028, as fully extended. Vornado swapped its share of the loan for the first three years to a fixed rate of 2.26%.
Vornado said the loan replaces the previous $533 million loan that bore interest at a fixed rate of 5.10% and was scheduled to mature in September 2021.
Vornado’s share of the net proceeds was approximately $454 million.
Vornado owns a 70% controlling interest in the partnership that owns the buildings and has sole decision-making authority.
555 California Street, also known as the Bank of America Tower, is a 52-story skyscraper in San Francisco’s Financial District.