A recent agreement between real estate investment trust Vornado and Kushner Cos., keeps current an investment at 666 Fifth Avenue in New York City.
The deal was initially made before the property market crashed and Vornado spent $80 million as a part of the agreement to gain partial ownership, the company noted. Kushner has agreed to spend $30 million. The building was purchased in 2007 for a total of $1.8 billion by Kushner.
"[The deal] shows that values in New York continue to hold up, said Alex Goldfarb, an analyst with Sandler O'Neill & Partners LP, told Bloomberg. "It's certainly not distressed pricing despite the fact that Kushner was in a bit of a distressed-type situation since acquiring this building."
Debt for the building drops to $1.1 billion from a previous $1.22 billion, according to the source. The remaining debt will be put into a hope certificate, along with other unpaid interest. This will be dealt with once vacancies are filled.
Vornado currently has interest in approximately 19 million square feet of office space in the New York City area.