BoA’s $90m loan backs Midtown South repo

Bank of America provided a $90 million loan to Paramount Group for the acquisition and repositioning of 670 Broadway, an office and retail building located in Manhattan’s Midtown South submarket.

Bank of America provided a $90 million loan to Paramount Group for the acquisition and repositioning of 670 Broadway, an office and retail building located in Manhattan’s Midtown South submarket.

The company purchased the asset through its Paramount Group Real Estate Fund VII for $112 million. The 77,500 sq ft building includes more than 11,000 sq ft of retail space.

759px-670_Broadway_Brooks_BrothersThe purchase marked one of the company’s major acquisitions during Q3, as noted in its Q3 results report. In addition, the company completed the acquisition of the remaining 35.8% ownership interest in 31 West 52nd Street from its joint venture partner for $378 million, comprised of $230 million in cash and the assumption of $148 million of existing debt.

Through its debt fund, Fund VIII, the company made a $40 million mezzanine loan secured by 1440 Broadway, a 751,546 square foot office and retail property located on the southeast corner of Broadway and 40th Street in Manhattan. The loan bears interest at LIBOR plus 600 bps, matures in October 2019 and has a one-year extension option.

The company owns or manages properties in New York, Washington, DC, and San Francisco. Its other New York assets include 60 Wall Street, 1633 Broadway, 712, 718 and 745 Fifth Avenue, among others.

Earlier this week, Bank of America provided an $86.8 million loan to Harbor Group International for the acquisition of Orchard Pond, a 63-building apartment complex in Gaithersburg, Maryland.

 

 

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