June 14, 2017
New York-based Paramount Group, Inc. completed a $300-million refinancing of 712 Fifth Avenue, a 543,000-square-foot, Class A office and retail building located in the Plaza District of New York. The new 10-year interest-only loan matures in July 2027, and has a fixed rate of 3.39%.
The net proceeds from the refinancing were used to repay the existing $246.5-million loan that bears interest at 4.41% and was scheduled to mature in March 2018. The company’s 50% share of net proceeds, after the repayment of the existing loan, closing costs and required reserves, was approximately $20 million.
Paramount’s Wilbur Paes said, “Over the past two years, we have fortified our balance sheet and have not only reduced our weighted average borrowing costs by over 185 bps, but we also have no remaining debt maturities until the end of 2021.”
Eastdil Secured, LLC arranged the financing.
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