Paramount Group Refis 1301 Avenue of the Americas With $850M Life Company Loan
Danielle Balbi Oct. 14, 2016, 12:45 p.m.
The new debt, which matures in October 2021, allows for two one-year extension options and carries a weighted interest rate of 2.77 percent, according to a press release that the real estate investment trust published earlier this week. The deal closed on Oct. 6, according to filings made public today. Cushman & Wakefield‘s Steve Kohn, Alex Hernandez, Chris Moyer and Alex Lapidus advised Paramount on the financing.
“Over the past 10 months, we have successfully financed over $2.35 billion of debt at attractive rates,” Wilbur Paes, the chief financial officer of Paramount, said in the release. “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.”
The Skidmore, Owings & Merrill-designed tower sits between West 52nd and West 53rd Streets and has 30,000 square feet of ground-floor and concourse-level retail space.
The net proceeds of the life company-led financing are also being used to repay Paramount’s debt maturities at 900 Third Avenue between East 54th and East 55th Streets, and at Waterview, a 24-story office tower on the Potomac River in Rosslyn, Va. The remaining funds will be put toward the company’s buy of One Front Street, a skyscraper in San Francisco, which is slated to close by the end of the year, according to the press release.
“We continue to execute our long-term strategic goals,” Albert Behler, the chairman, chief executive officer and president of Paramount, said in prepared remarks. “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.”