The Real Deal New York

Paramount shopping 49% stake in
900 Third Avenue

Deal could value 596K sf office tower at $500M: report
March 22, 2017 02:15PM

900 Third Avenue and Paramount’s Albert Behler

Paramount Group is looking to sell a 49 percent stake in its 596,000-square-foot Midtown office tower at 900 Third Avenue.

The 36-story property is 98 percent occupied, according to Real Estate Alert. The deal could value the building as high as $500 million, nearly $840 per square foot.

Tenants include the merchant bank Carl Marks & Co., investment firm Columbus Nova and Folger Hill Asset Management.

Paramount bought the building from a JMB Realty partnership for $164.8 million – or $277 per square foot – in 1999, making it one of the real estate investment trust’s longest-held investments.

Paramount sold a 49 percent stake in 2003 to ING Office Fund, then bought it back in 2012 for $172.7 million. The deal valued the property at $352.5 million.

Eastdil Secured is marketing the building stake for sale. [RE Alert]Rich Bockmann