New York-based investment firm Paramount Group has recapitalized a 49 percent interest in its 2.5 million-square-foot office tower at 1633 Broadway, between 50th and 51st streets, GlobeSt.com reported, after Morgan Stanley, Bank of America and Merrill Lynch affiliates exited the building partnership.
Paramount’s new partners in the 48-story, Class A property include affiliates of Beacon Capital Partners and Paramount Group’s Real Estate Fund IV. In addition, SL Green Realty also acquired a preferred equity interest. Paramount retained its 51 percent controlling interest.
“We took our interest in the property to 51 percent to about 75 percent,” Dan Lauer, vice president of acquisitions for Paramount, told GlobeSt.com. “SL Green is making a preferred equity investment and Beacon is acquiring the remaining limited interest in the property.”
Lauer declined to talk specifically about the value of the building, but a market report from Massey Knakal Realty Services, cited by GlobeSt.com, lists a partial interest of 1633 Broadway at $980 million, while Real Capital Analytics values the entire tower at $2 billion total. [GlobeSt]