{"id":1004546014,"date":"2021-08-03T03:21:44","date_gmt":"2021-08-03T11:21:44","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004546014"},"modified":"2022-12-08T16:38:06","modified_gmt":"2022-12-09T00:38:06","slug":"paramount-refis-manhattan-landmark-for-860m","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/paramount-refis-manhattan-landmark-for-860m\/","title":{"rendered":"Paramount Refis Manhattan Landmark for $860M"},"content":{"rendered":"
\"\"<\/a>

1301 Avenue of the Americas. Image via Google Street View<\/p><\/div>\n

Paramount Group Inc. has completed an $860 million refinancing of 1301 Avenue of the Americas, a 1.7 million-square-foot Class A office building sited between 52nd and 53rd streets in Midtown Manhattan, Paramount announced Monday.<\/p>\n

Completed in 1965, the 45-story building is currently 71.5 percent leased.<\/p>\n

The new five-year interest-only loan has an initial weighted average interest rate of 2.96 percent and consists of a $500 million tranche that bears interest at a fixed rate of 3.11 percent and a $360 million tranche that bears interest at a variable rate of LIBOR plus 2.65 percent.<\/p>\n

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READ ALSO<\/strong>: NYC Market Update: Manhattan\u2019s Office Pipeline Surpasses 20 MSF<\/a><\/p>\n

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The proceeds from the refinancing were used to repay the existing $850 million loan that was scheduled to mature in November 2021. The previous lender was AXA Equitable Life Insurance Co., according to CommercialEdge.<\/p>\n

According to Wilbur Paes, Paramount\u2019s COO, CFO & treasurer, the transaction is a strong endorsement of the strength of the New York City office market. \u201cWith the refinancing of this high-quality Class A asset in today\u2019s attractive credit markets, we have strengthened our balance sheet and improved financial flexibility,\u201d he added in a prepared statement.<\/p>\n

Up, down and out<\/h2>\n

Midtown Manhattan office asking rents have fallen by 5.4 percent, to an average of $73.79, since the recent high in the third quarter of 2020, driven (as elsewhere in Manhattan) by a surfeit of sublease space, according to a second-quarter report from Cushman & Wakefield.<\/p>\n

Vacancy in most Midtown office submarkets has hit \u201chistoric levels,\u201d and year-to-date absorption is a negative 6.7 million square feet. New leasing is up, however, with 4.1 million square feet taken up so far in 2021, also according to Cushman & Wakefield.<\/p>\n

Last December, Paramount exited the Washington, D.C., area with the sale of 1899 Pennsylvania Ave<\/a>.<\/a> The 190,955-square-foot Class A office sold for $103 million, or $12 million less than had been asked originally, reportedly because of pressure on the office market following the onset of the pandemic.<\/p>\n

In May, Paramount revealed plans for a $250 million renovation of 60 Wall St.<\/a> in Lower Manhattan, which since 2007 had been the North American headquarters for Deutsche Bank. That lease, however, expires next year, and Deutsche Bank has already signed a lease for 1.1 million square feet at Related Cos.\u2019 Time Warner Center on the Upper West Side.<\/p>\n","protected":false},"excerpt":{"rendered":"

The 1.7 million-square-foot Midtown office building has been refinanced with two tranches.<\/p>\n","protected":false},"author":882,"featured_media":1004546027,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21825,1600,21742,10,21747],"tags":[35444,33601],"class_list":["post-1004546014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-finance","category-new-york","category-latest","category-northeast","category-office","tag-axa-equitable-life-insurance-company","tag-paramount-group-inc"],"acf":[],"yoast_head":"\nParamount Refis Manhattan Landmark for $860M - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/paramount-refis-manhattan-landmark-for-860m\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Paramount Refis Manhattan Landmark for $860M\" \/>\n<meta property=\"og:description\" content=\"The 1.7 million-square-foot Midtown office building has been refinanced with two tranches.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/paramount-refis-manhattan-landmark-for-860m\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-03T11:21:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T00:38:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/1301-Avenue-of-the-Americas.png\" \/>\n\t<meta property=\"og:image:width\" content=\"711\" \/>\n\t<meta property=\"og:image:height\" content=\"533\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/paramount-refis-manhattan-landmark-for-860m\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/paramount-refis-manhattan-landmark-for-860m\/\",\"name\":\"Paramount Refis Manhattan Landmark for $860M - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/paramount-refis-manhattan-landmark-for-860m\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/paramount-refis-manhattan-landmark-for-860m\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/1301-Avenue-of-the-Americas.png\",\"datePublished\":\"2021-08-03T11:21:44+00:00\",\"dateModified\":\"2022-12-09T00:38:06+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/paramount-refis-manhattan-landmark-for-860m\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/paramount-refis-manhattan-landmark-for-860m\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/paramount-refis-manhattan-landmark-for-860m\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/1301-Avenue-of-the-Americas.png\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/1301-Avenue-of-the-Americas.png\",\"width\":711,\"height\":533,\"caption\":\"1301 Avenue of the Americas. 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