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NEW YORK CITY- Paramount Group, Inc. has announced it is seeking to enter into a joint venture agreement to sell a 10 percent interest in 1633 Broadway, a 2.5 million-square-foot trophy office building on Broadway between 50th and 51st streets in Manhattan. The transaction, which is subject to customary closing conditions, is expected to close in the second quarter of 2020.

The transaction values the property at $2.4 billion, or approximately $960 per square foot. In November 2019, Paramount completed a $1.25 billion interest-only refinancing of the property at a fixed rate of 2.99 percent, realizing $179 million of net proceeds. Upon completion of this new sale, Paramount anticipates net proceeds of approximately $114  million, which will get funneled for general corporate purposes.

"With this pending sale of a joint venture interest in 1633 Broadway, we have successfully proven the value of this enormous trophy asset at levels well-above what is implied by our stock price," said Albert Behler, chairman, CEO and president of Paramount, tells GlobeSt.com. "We have always said that we would not hesitate to harvest value when deemed appropriate. To execute on this transaction in the current environment speaks to the quality and desirability of our assets, as well as our team's unparalleled ability to execute."