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Paramount Closes $860M Refi on 1301 Ave. of the Americas
Paramount Group has completed an $860-million refinancing of 1301 Avenue of the Americas, its 1.7-million-square-foot trophy office building in Midtown Manhattan. The property is currently 71.5% leased.
The new five-year interest-only loan has an initial weighted average interest rate of 2.96% and includes 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%. Proceeds from the refi were used to repay the existing $850-million loan, scheduled to mature in November.
“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, Paramount’s COO, CFO and treasurer. “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.”
- ◦Financing
