Paramount Agrees to Sell Interest in $2.4B Midtown Manhattan Skyscraper
NEW YORK CITY — Paramount Group Inc. (NYSE: PGRE) has agreed to sell a 10 percent interest in 1633 Broadway, a 2.5 million-square-foot office tower located on Broadway between 50th and 51st streets in Manhattan. While the price and buyer were not disclosed, the seller says the transaction values the property at $2.4 billion and netted a profit of $114 million for the company. The transaction is scheduled to close in the second quarter.
Floor plates at the 48-story building range from 37,000 to 54,000 square feet. The property features a newly renovated lobby, 40 elevators, direct access to the New York City subway system and a 250-space parking garage.
The property is located in the heart of Manhattan’s Theater District, with both Gershwin Theater and Circle In The Square Theater located in the building. The location is two blocks from Radio City Music Hall and Rockefeller Center, four blocks from Times Square and seven blocks from Central Park.
“With this pending sale of a joint venture interest in 1633 Broadway, we have successfully proven the value of this enormous trophy asset at levels well above what is implied by our stock price,” says Albert Behler, chairman, CEO and president of Paramount. “We have always said that we would not hesitate to harvest value when deemed appropriate.”
In November 2019, Paramount completed a $1.25 billion, interest-only refinancing of the property at a fixed rate of 2.99 percent, realizing $179 million of net proceeds.
Headquartered in New York City, Paramount is a fully integrated real estate investment trust that owns, operates, manages, acquires and redevelops Class A office assets in select central business district submarkets of New York City, San Francisco and Washington, D.C. The company’s stock price closed at $8.77 on Tuesday, March 31, down from $14.33 one year ago.
— Kristin Hiller