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http://www.crenews.com/general_news/general/666-fifth-ave.-seen-reaching-1.05bln-value-in-2017.html

The building at 666 Fifth was recently recapitalized, with Vornado Realty Trust injecting $80 million in return for a 49.5 percent stake and a venture of Jared Kushner and George Gellert, which purchased it in 2007 for $1.8 billion, investing an additional $30 million. As part of the deal, the property's mortgage, which was securitized in three CMBS deals, was recast as a $1.1 billion A-note and $115 B-note that is junior to Vornado's and Kushner's latest investment.

The debt originally was set to mature in 2017, but that has been pushed off for two years. Wells noted that a 1 percent fee is added toi the loan if the debt is paid off during the extension period. That, it noted, serves as incentive to repay the debt by its original maturity.

Using a 5.5 percent capitalization rate, CMBS analysts at Wells determined that the property would be valued at $1.05 billion by the time its debt matures, assuming the 10 percent annual growth in cash flow. But the property's value is roughly $929.1 million through a blended analysis that adds debt-yield and refinance rates to the income-capitalization approach.