Paramount Group recently completed a $1.25-billion refinancing of 1633 Broadway, its 2.5-million-square foot office tower in Midtown. Eastdil Secured arranged the financing on the REIT’s behalf.
“With the office portion of 1633 Broadway now 100% leased, we took advantage of attractive credit markets to capitalize on our recent leasing success, improve the company’s debt maturity profile and increase our financial flexibility,” said Wilbur Paes, EVP, CFO and treasurer at Paramount. “Our total debt stack now carries a weighted average interest rate of 3.44% and a weighted average maturity of over six years.”
The new 10-year, interest-only loan has a fixed rate of 2.99% and matures in December 2029. Proceeds from the refi were used to repay the existing $1.05-billion loan that bore interest at a weighted average rate of 3.55%.
Paramount realized net proceeds of approximately $179 million after repaying the existing loan, swap breakage costs and closing costs.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).