Paramount Completes $850M Refinancing of 1.8 MSF Office Building in Manhattan
NEW YORK CITY — Paramount Group Inc. (NYSE: PGRE) has received an $850 million refinancing for 1301 Avenue of the Americas, a 1.8 million-square-foot trophy office building located between 52nd and 53rd streets in Midtown Manhattan.
The 45-story office tower includes 30,000 square feet of ground-floor and concourse-level retail space. The property also features in-building access to Rockefeller Center and views of Central Park.
Cushman & Wakefield arranged the five-year, interest-only loan, which matures in October 2021 and has two one-year extension options.
The net proceeds from the financing were used to repay the company’s 2017 debt maturities at 900 Third Avenue in Manhattan and Waterview in Washington, D.C. Paramount plans to use the remaining proceeds to help fund the previously announced acquisition of One Front Street in San Francisco, which is expected to close by the end of the year.
“By capitalizing on today’s attractive credit markets for our high-quality, Class A assets, we strengthen our balance sheet and fortify our position in the market,” says Albert Behler, chairman, CEO and president of Paramount.
“Over the past 10 months, we have successfully financed over $2.35 billion of debt at attractive rates,” adds Wilbur Paes, chief financial officer of Paramount. “As a result, we have not only significantly lowered our weighted average borrowing costs and extended our debt maturities, but have also strategically laddered them to minimize future refinancing risk.”
AXA Equitable Life Insurance Co., MetLife Real Estate and New York Life provided the capital. Cushman & Wakefield Equity, Debt & Structured Finance acted as exclusive advisor to Paramount on the transaction.
Headquartered in New York City, Paramount Group Inc. is a publicly traded REIT that owns, operates, manages, acquires and redevelops Class A office properties located in the select central business district submarkets of New York City, Washington, D.C., and San Francisco.
The company’s stock price closed at $15.70 per share on Tuesday, Oct. 11, down from $17.69 per share one year ago.
— Jeff Shaw