April 2, 2020
Paramount Group Inc. has entered into an agreement to sell a 10% joint venture interest in 1633 Broadway, its 2.5-million-square-foot trophy office building located on Broadway between 50th and 51st streets in Midtown Manhattan. The transaction values the property at $2.4 billion, or approximately $960 per square foot.
The JV with an undisclosed partner follows Paramount’s $1.25-billion refinancing of 1633 Broadway this past November. Paramount will realize net proceeds of approximately $114 million from the sale of its 10% stake in the property. The transaction is expected to close in the second quarter.
“We have always said that we would not hesitate to harvest value when deemed appropriate,” said Albert Behler, chairman, CEO and president of Paramount. “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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