Paramount Group Refinances 900 Third Avenue

Paramount Group is still working on its $1.6 billion take-private, but the bills still gotta get paid.

The Albert Behler-led REIT refinanced its 900 Third Avenue office tower with a $175 million loan from New York Life Insurance, The Real Deal has learned.

The German bank Landesbank Baden-Württemberg had originally provided a $270 million loan on the 600,000-square-foot tower in 2008, though Paramount’s financial disclosures from earlier this year show that the property is supported by the company’s credit facility.

A spokesperson for Paramount Group declined to comment and a representative for New York Life did not immediately respond.

An Eastdil Secured team led by Grant Frankel and Rob Turner arranged the financing.

The size of the new loan relative to the old one is representative of the loss of value that 900 Third — like many other office properties — has seen over the years.

In January, Paramount sold a minority interest in the building to an unidentified investor that valued the property at $210 million — down from a $352.5 million valuation in 2012.

The building was 69 percent leased at the end of 2024.

The deal comes as Paramount works toward closing its sale to Rithm Capital, which was announced in September.

Rithm, the $6 billion real estate asset manager that was spun out of Fortress Investment Group in 2013, inked a deal to buy Paramount’s 13 million square feet of office space in New York and San Francisco at a 40 percent discount to its book value.

Paramount put itself up for sale after the company earlier this year revealed it had made millions of dollars in previously undisclosed payments to Behler’s companies. The REIT also disclosed it is under an SEC investigation. Meanwhile, TRD discovered that Behler had given a no-bid contract to a company tied to his ex-girlfriend.