The Paramount Group has closed its second real estate debt fund – the Paramount Group Real Estate Fund VIII – with $755 million in commitments, primarily from German institutional investors.
Over $165 million of the fund has already been deployed in three investments. The real estate investment trust’s fund, its largest to date, focuses on mezzanine and preferred equity investments in office properties in its target markets of New York City, Washington, DC and San Francisco.
“The successful close of Fund VIII is recognition of Paramount’s stellar reputation and the confidence institutional investors have in our platform,” said Albert Behler, chairman, chief executive officer and president of Paramount.
Also this month, the trust provided a $500 million refinancing of 31 West 52nd Street, a 786,647 square foot Class A office building located between Fifth Avenue and Avenue of the Americas in the heart of Midtown Manhattan. The 10-year loan, with a fixed rate of 3.8 percent, was arranged with AXA Equitable Life Insurance Company and MetLife.
Paramount Group is a real estate investment trust that owns, operates, manages, acquires and redevelops Class A office properties located in major city business districts. The trust is headquartered in New York City and had total assets of $8.4 billion as of March 31, 2016, according to its latest quarterly report.