NEW YORK — Paramount Group, a real estate investment trust, said it has completed a $300 million refinancing of 712 Fifth Avenue, a 543,000 square foot Class A office and retail building located in the Plaza District of New York.
The new 10-year interest-only loan matures in July 2027 and has a fixed rate of 3.39%. The net proceeds from the refinancing were used to repay the existing $246.5 million loan that bears interest at 4.41% and was scheduled to mature in March 2018. The Company’s 50% share of net proceeds, after the repayment of the existing loan, closing costs and required reserves, was approximately $20 million.
“This financing is yet another example of our ability to take advantage of the attractive credit markets for our high quality assets,” said Wilbur Paes, Executive Vice President, Chief Financial Officer and Treasurer of Paramount. “Over the past two years, we have fortified our balance sheet and have not only reduced our weighted average borrowing costs by over 185 bps but we also have no remaining debt maturities until the end of 2021.”
The 52-story building was designed by Kohn Pedersen Fox Associates and includes 543,341 of rentable square feet. The building has views of both Central Park and Midtown Manhattan and offers first class amenities to its impressive tenant roster. The office tower is within walking distance to numerous luxury hotels, museums and retail stores.
Paramount Group owns high-quality office properties in NY, Washington DC and San Francisco.