NEW YORK--(BUSINESS WIRE)--Paramount Group, Inc., (NYSE:PGRE) (“Paramount” or the “Company”) announced today that it has completed a $500 million refinancing of 31 West 52nd Street, a 786,647 square foot Class A office building located between Fifth Avenue and Avenue of the Americas in the heart of Midtown Manhattan.
The new 10 year loan is interest only at a fixed rate of 3.80%. The Company realized net proceeds of approximately $65 million after the repayment of the existing loan, swap breakage costs and closing costs. The property was previously encumbered by a $413.5 million loan that was scheduled to mature in December 2017 and had a weighted average interest rate of 4.23%.
“We continue to strengthen our balance sheet by refinancing existing debt at more favorable terms, affording us added financial flexibility,” said Albert Behler, Chairman, Chief Executive Officer and President of Paramount. “We remain focused on executing our proven strategy and expanding our relationships with leading financial institutions that recognize the quality of our portfolio and strength of our platform.”
The loan was arranged with AXA Equitable Life Insurance Company, through its advisor Quadrant Real Estate Advisors, LLC, and Metropolitan Life Insurance Company. Paramount engaged Eastdil Secured, LLC to secure the financing.
About Paramount Group, Inc.
Headquartered in New York City, Paramount Group, Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City, Washington, D.C. and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.