Wells fargo and Morgan stanley are the lenders behind the $ 860 million refinance Primordial group‘s 1301 Avenue of the Americas, learned Commercial Observer.
Paramount announced the transaction on the 1.7 million square foot Midtown office early Tuesday, but did not identify the lenders at the time.
Wells Fargo and Morgan Stanley were co-responsible for the transaction, sources say, with each lender provided debt of $ 430 million, split into a first mortgage of $ 355 million and a mezzanine loan of $ 75 million.
The 45-story trophy asset, between 52nd and 53rd Streets, is 71.5% leased to various tenants and includes 30,000 square feet of ground floor and lobby level commercial space. The building offers lower level access to rockefeller center and offers views of Central park and Midtown.
“With the refinancing of this high quality Class A asset in today’s attractive credit markets, we have strengthened our balance sheet and improved our financial flexibility. ” Wilbur paesParamount chief operating officer, chief financial officer and treasurer, said in the announcement Tuesday. “This transaction is a strong endorsement of the strength of the New York office market and a testament to the confidence the capital markets have in our platform.”
the The five-year interest-only loan consists of a $ 500 million tranche with a fixed interest rate of 3.11%, plus a $ 360 million tranche with a floating rate of LIBOR plus 2.65% .
Debt cancels $ 850 million loan from a trio of life insurance companies back in October 2016: AXA Equitable Life Insurance Company, MetLife and New York life. The five-year loan was due to mature in November, but the refinancing knocked it down.
The deal marks one of the largest office refinancings to close after COVID in New York City.
Earlier this month, Goldman Sachs led the $ 900 million loan on Stellar management‘s A Soho Square, although few can compete with the $ 3 billion in refi for SL Green Realty Corp.‘s A Vanderbilt, which closed in June and was also run by Wells Fargo, with Goldman Sachs.
The Paramount Group also participated in the $ 1.25 billion construction loan for L&L Holding Company and Columbia Real Estate Trustthe redevelopment of Terminal warehouse in a creative office space. The company was a mezzanine lender in the matter, alongside Oaktree Capital, as first reported by CO.
A Paramount spokesperson declined to comment. Wells Fargo officials were not immediately available for comment. A Morgan Stanley spokesperson did not return a request for comment.