December 2, 2019
Paramount Group recently completed a $1.25-billion refinancing of 1633 Broadway, its 2.5-million-square foot office tower in Midtown. Eastdil Secured arranged the financing on the REIT’s behalf.
“With the office portion of 1633 Broadway now 100% leased, we took advantage of attractive credit markets to capitalize on our recent leasing success, improve the company’s debt maturity profile and increase our financial flexibility,” said Wilbur Paes, EVP, CFO and treasurer at Paramount. “Our total debt stack now carries a weighted average interest rate of 3.44% and a weighted average maturity of over six years.”
The new 10-year, interest-only loan has a fixed rate of 2.99% and matures in December 2029. Proceeds from the refi were used to repay the existing $1.05-billion loan that bore interest at a weighted average rate of 3.55%.
Paramount realized net proceeds of approximately $179 million after repaying the existing loan, swap breakage costs and closing costs.
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