Investcorp buys mezzanine debt on Paramount Hotel

The U.S. real estate arm of international investment firm Investcorp has purchased the mezzanine debt on the Paramount Hotel at 245 West 46th Street from San Francisco-based Fillmore Capital Partners, GlobeSt.com reported. The debt includes two existing mezzanine loans with a principal balance of $40 million.

Aby Rosen and Michael Fuchs’ RFR Holding bought the Paramount Hotel for $275 million from Walton Street Capital and Highgate Holdings earlier this year.

“We’re pleased to have had a chance to provide financing for a transaction involving one of New York City’s most renowned hotels, and one that is in a particularly attractive location,” Christopher Hoeffel, a managing director at Investcorp, in a statement.

This is not the first time Investcorp has partnered with RFR, GlobeSt.com noted. In 2004, Investcorp acquired the W South Beach and developed the hotel and condominium project with the RFR. [GlobeSt]