Paramount Group Secures $98 Million Acquisition Loan for Times Square Retail Property
Paramount Group, the landlord of 1600 Broadway in Times Square, has secured a $98 million acquisition loan from Bank of America.
Paramount Group, a real estate investment trust, has secured a $98 million acquisition loan from Bank of America for its retail property at 1600 Broadway in Times Square. The loan was arranged by Adam Spies, Gideon Gil, Lauren Kaufman & Zachary Kraft of Cushman & Wakefield.
The property, located in the heart of Times Square, is a prime retail location with high foot traffic. The building spans 137,000 square feet and is currently fully leased to tenants such as Sephora, Swatch, and Skechers. The property is also home to the popular restaurant, Carmine’s.
Paramount Group acquired the property in 2015 for 565 million. The company has been actively investing in the Times Square market, having recently acquired the leasehold interest in 1633 Broadway for 840 million.
Bank of America’s loan to Paramount Group is a 10-year fixed-rate loan with a 30-year amortization schedule. The loan will be used to refinance existing debt and provide additional capital for the property.
The deal highlights the continued demand for prime retail properties in Times Square, despite the challenges faced by the retail industry in recent years. The property’s strong tenant roster and location in one of the world’s most iconic tourist destinations make it a valuable asset for Paramount Group.
Adam Spies, Vice Chairman at Cushman & Wakefield, commented on the deal, stating, “This transaction is a testament to the strength of the Times Square market and the quality of the asset. We are pleased to have worked with Paramount Group and Bank of America to secure this financing.”