The Paramount Group sealed a $500 million refinancing of its 29-story Midtown office building at 31 West 52nd Street, the real estate investment trust announced Tuesday.
Paramount secured the new 10-year, interest-only loan at a fixed rate of 3.8 percent — with the financing replacing a previous $413.5 million loan on the property that was due to mature in December 2017 and carried a weighted average interest rate of 4.23 percent.
The Midtown-based office REIT — led by chair, CEO and president Albert Behler – said it realized net proceeds of around $65 million after paying off the existing loan and also factoring in swap breakage and closing costs.
In a statement, Behler said the deal was motivated by the company’s desire to refinance the existing debt “at more favorable terms, affording us added financial flexibility.”
AXA Equitable Life Insurance Company, through advisor Quadrant Real Estate Advisors, and Metropolitan Life Insurance Company arranged the new loan. Eastdil Secured brokered the refinancing on behalf of Paramount.
The 787,000-square-foot office tower at 31 West 52nd Street is located between Fifth and Sixth avenues, one block south of the Museum of Modern Art.
In September, Paramount announced it had bought out an undisclosed joint-venture partner on the property, acquiring the nearly 36 percent ownership interest in 31 West 52nd Street that it did not own for around $230 million.