731 Lexington Ave

Fitch Ratings has downgraded the outlook on a $500 million mortgage tied to Vornado Realty Trust’s Bloomberg Tower at 731 Lexington Avenue. The mortgage, maturing in June, faces uncertainty due to a floating interest rate that rose from 1.4% to 6.2% in the last two years. While Bloomberg LP occupies the office space through 2029, concerns arise over Vornado’s ability to secure an extension. Fitch’s outlook is now “negative,” citing potential downgrades if an extension agreement isn’t reached. The tower, acquired by Vornado in the 1980s, also features residential space, and Donald Trump unsuccessfully sought the site before Vornado’s acquisition.