NEW YORK CITY—Paramount Group has completed the sale of a 10% interest in 1633 Broadway, a 2.5 million square foot trophy office building located on Broadway between 50th and 51st streets in Manhattan. The transaction valued the property at $2.4 billion, or approximately $960 per square foot.
Last month the REIT announced it was seeking to enter into a joint venture agreement to sell the stake. In November 2019, Paramount completed a $1.25 billion interest-only refinancing of the property at a fixed rate of 2.99%, realizing $179 million of net proceeds.
With this latest transaction, 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, told GlobeSt.com last month when it announced it was seeking a JV partner. "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."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
