Vornado Realty Trust has turned over its $191 million mortgage for its furniture mart buildings in High Point, NC, to a special servicer, the Wall Street Journal reported recently. Vornado’s 2 million square feet of showroom space includes Market Square and Suites, Furniture Plaza, National Furniture Mart and Plaza Suites.
Vornado, one of the largest commercial landlords in the United States, is more than 90 days delinquent on the mortgage, the Journal reported. The company has offered to turn the property over to J.E. Robert Cox, the servicer of the mortgage, in a deed-in-lieu foreclosure.
Vornado filed an 8-K form with the U.S. Securities and Exchange Commission in March, saying that the company had notified the debt servicer that Vornado was not prepared to fund any shortfalls in debt service, and requesting that the loan be transferred to a special servicer.
Brian Casey, President and CEO of the High Point Market Authority, said Vornado’s absence will not affect High Point, which he says is becoming even stronger as a market.
“[High Point Market] has been here for 100 years, and we’ve seen landlords come and go with no impact on the market,” Casey says. “This does not change the fact that the building is still a profitable entity.”
Casey added that the buildings are still generating positive cash flow as market venues, and that he is confident they will continue to be significant locations within the High Point Market.
An outside spokesperson for Vornado said the company had no comment at this time.
Officials from Merchandise Market Properties Inc. (MMPI), the company that manages the High Point buildings, released a statement saying it’s “business as usual” for their company, and that they are not changing how they manage their business or their dedication to their tenants and markets.