Life insurance lenders provide $500m to refinance Manhattan offices

AXA Equitable Life Insurance Company and Metropolitan Life Insurance Company provided $500 million for the refinancing of a 29-story office building at 31 West 52nd Street in Midtown Manhattan.

AXA Equitable Life Insurance Company and Metropolitan Life Insurance Company provided $500 million for the refinancing of a 29-story office building at 31 West 52nd Street in Midtown Manhattan.

AXA provided $250 million through its advisor Quadrant Real Estate Advisors, while MetLife provided the remaining $250 million.

31West52ndStreet_640x640-490x490The 10-year loan is interest only at a fixed rate of 3.80 percent, according to a statement from the borrower, Paramount Group, which engaged Eastdil Secured to secure the financing.

The property was previously encumbered by a $413.5 million loan that was scheduled to mature in December 2017 and had a weighted average interest rate of 4.23 percent. The company realized net proceeds of approximately $65 million after the repayment of the existing loan, swap breakage costs and closing costs, according to the statement.  

“We continue to strengthen our balance sheet by refinancing existing debt at more favorable terms, affording us added financial flexibility,” said Albert Behler, chairman, CEO and president.. “We remain focused on executing our proven strategy and expanding our relationships with leading financial institutions that recognize the quality of our portfolio and strength of our platform.”

Designed by Kevin Roche John Dinkeloo & Associates, 31 West 52nd Street is a 29-story, 786,647 sq ft office tower located between 5th Avenue and Avenue of the Americas.

Headquartered in New York City, Paramount Group is a real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in New York City, Washington, DC, and San Francisco.  

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