Vornado and Related Chelsea Office at 85 Tenth Ave Faces Special Servicing
Morningstar says cash flow for Vornado Realty Trust and Related’s 85 Tenth Ave Chelsea office fell 28% below 2016 refinancing projections, despite strong occupancy. With a 26.8% vacancy rate and higher borrowing costs, lenders are leaning toward special servicing or loan modifications; Morningstar expects an extension or modification as NOI misses expectations, highlighting refinancing risk for cash-flow-light offices.