Real estate investment trust Paramount Group has refinanced its property at 1301 Avenue of the Americas in Midtown Manhattan with a new $900 million loan. The refinancing covers a 1.8 million square-foot Class A office building and reflects the continued strength of the property in a highly competitive market.
The new financing was made possible by recent, vigorous leasing activity at the building, which is now more than 97% leased. This high occupancy rate is a key indicator of the building’s leading position and desirability in the Midtown office market. The building, located between 52nd and 53rd Streets, is a critical asset in Paramount Group’s portfolio.
The new loan is a five-year, interest-only agreement with a fixed interest rate of 6.39%. This strategic refinancing replaces the existing $860 million loan, which was set to mature in August 2026. By securing this new financing, Paramount Group has proactively addressed upcoming debt obligations, providing greater stability and financial flexibility.
Along with repaying the old loan, the proceeds will be used to fund future leasing costs. This positions the company for continued success and allows it to maintain the building’s premier status, ensuring it remains attractive to tenants. The completion of this refinancing deal reinforces Paramount Group’s ability to manage its portfolio effectively and capitalize on market opportunities.
KEY QUOTE:
“This transaction reflects our proactive and disciplined approach to capital management. It reflects our confidence in the long-term value of this premier Midtown asset and showcases our ability to execute in today’s selective credit environment.”
Ermelinda Berberi, Executive Vice President, Chief Financial Officer and Treasurer of Paramount
