NEW YORK--(BUSINESS WIRE)--Paramount Group, Inc., (NYSE:PGRE) (“Paramount” or the “Company”) announced today that it has completed a $300 million refinancing of 712 Fifth Avenue, a 543,000 square foot Class A office and retail building located in the Plaza District of New York.
The new 10-year interest-only loan matures in July 2027 and has a fixed rate of 3.39%. The net proceeds from the refinancing were used to repay the existing $246.5 million loan that bears interest at 4.41% and was scheduled to mature in March 2018. The Company’s 50% share of net proceeds, after the repayment of the existing loan, closing costs and required reserves, was approximately $20 million.
“This financing is yet another example of our ability to take advantage of the attractive credit markets for our high quality assets,” said Wilbur Paes, Executive Vice President, Chief Financial Officer and Treasurer of Paramount. “Over the past two years, we have fortified our balance sheet and have not only reduced our weighted average borrowing costs by over 185 bps but we also have no remaining debt maturities until the end of 2021.”
Paramount engaged Eastdil Secured, LLC to arrange the financing.
About Paramount Group, Inc.
Headquartered in New York City, Paramount 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.