New York REIT has obtained $760M in financing from Credit Suisse against its properties.
The REIT plans to use the funds for three purposes. First, to pay off its remaining debt. Second, to buy the remaining portion of the 2M SF Worldwide Plaza office tower in Midtown West (the firm now owns 49% of it). And third, to finance the firm’s liquidation and dissolution.
New York REIT’s debt load had stood at $485M, but that debt was subject to terms that didn’t allow for the liquidation that’s set to go forward. The company’s board plans to vote Jan. 3 on a proposal to liquidate all of its assets, including Worldwide Plaza.
A recent plan to merge with Washington, DC-based JBG Cos failed.
On Monday news came out that the board has tapped Winthrop REIT Advisors, a firm led by former Vornado executive Wendy Silverstein, to oversee the liquidation.
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