Trophy Midtown Office Secures Hefty Refi

Paramount Group has completed an $850 million financing of 1301 Ave. of the Americas.

NEW YORK CITY—Paramount Group has completed an $850 million financing of 1301 Ave. of the Americas. The trophy, Class A Midtown office tower, located between 52nd and 53rd Streets, spans 1.8 million square feet.

The five-year interest-only loan matures in October 2021, has two one-year extension options and has an initial weighted average interest rate of 2.77%, based on a $500 million tranche at a fixed rate of 3.05% and a $350 million tranche at a floating rate of LIBOR plus 180 bps (2.36% at closing). The net proceeds from the financing were used to repay the company’s 2017 debt maturities at 900 Third Ave. and Waterview, including swap breakage, defeasance and other closing costs.

The loan was arranged with AXA Equitable Life Insurance Co., through its advisor Quadrant Real Estate Advisors MetLife Real Estate and New York Life. Cushman & Wakefield equity, debt & structured finance acted as exclusive advisor to Paramount on the transaction.