NEW YORK--(BUSINESS WIRE)--Paramount Group, Inc. (NYSE: PGRE) (“Paramount” or the “Company”) announced today that it has completed an $860 million refinancing of 1301 Avenue of the Americas, a 1.7 million square-foot trophy office building, located between 52nd and 53rd Streets in Midtown Manhattan, that is currently 71.5% leased.
The new five-year interest-only loan has an initial weighted average interest rate of 2.96% and is comprised of a $500 million tranche that bears interest at a fixed rate of 3.11% and a $360 million tranche that bears interest at a variable rate of LIBOR plus 2.65%. The proceeds from the refinancing were used to repay the existing $850 million loan that was scheduled to mature in November 2021.
“With the refinancing of this high-quality Class A asset in today’s attractive credit markets, we have strengthened our balance sheet and improved financial flexibility,” said Wilbur Paes, Chief Operating Officer, Chief Financial Officer, and Treasurer of Paramount. “This transaction is a strong endorsement of the strength of the New York City office market and a testament to the confidence the capital markets have in our platform.”
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 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.