Manhattan, NYC.
NEW YORK CITY – Paramount Group, Inc., a New York-based owner and operator of Class A office buildings, has secured a $1.25 billion refinancing for 1633 Broadway, a 2.5-million-square-foot trophy office building between 50th and 51st Streets in Midtown. Eastdil Secured arranged the financing.
Net proceeds of the new 10-year interest-only loan, which has a fixed rate of 2.99% and matures in December 2029, was allocated for repayment of the existing $1 billion debt on the property. It was set to mature in 2022 and had an average weighted rate of 3.55%. In Paramount's swapping of the loans, they actualized $179 million of net proceeds after breakage and closing costs.
"Through this transaction, we have effectively refinanced out equity proceeds, right-sized leverage on the asset, and added seven years of the term, all while keeping annual cash interest unchanged," said Paes in a prepared statement.
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
