Paramount Lands $1.25B REFI for 1633 Broadway
The new 10-year interest-only loan has a fixed rate of 2.99% and matures in December 2029.
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.