Paramount Closes on $1.5B Tower Buy

NEW YORK CITY-Locally based Paramount Group Inc., a privately owned international real estate investment and management company, has closed on the acquisition of interests in 1301 Avenue of the Americas. GlobeSt.com first reported the deal in early June, noting that it would trade for $1.45 billion, which sources considered a “ballpark figure,” but Paramount sources tell GlobeSt.com that they cannot confirm or disclose the sales price at this time.

The 45-story, 1.8-million-sf class A office tower is located on Sixth Avenue between 52nd and 53rd streets in Midtown Manhattan. Designed by Skidmore, Owings & Merrill, and built in 1963 as the headquarters for JC Penney, the property underwent a complete renovation and modernization that included the installation of reflecting pools and seating on the outdoor plaza in 1989.

According to Albert Behler, president & CEO of Paramount Group, in a prepared company press release, the property is considered one of the most sought-after Manhattan office addresses due to the building’s amenities, and immediate access to eight subway lines “via a concourse level connection to Rockefeller Center.” Behler also emphasized that the property’s “high-quality interior and tenant build-outs, which include cafeterias, media rooms, executive dining rooms, a mock courtroom and multiple trading floors, reflect the premium quality of its current occupants, including Lehman Brothers, Calyon and Dewey & LeBoeuf LLP, and make it an extraordinarily desirable location for new tenants.”

Paramount Group represented itself in the transaction. The property is one of Macklowe Properties’ trophy assets that was turned over to Deutsche Bank. The seller was represented by Eastdil Secured LLC, who was unable to be reached by deadline. Deutsche Bank did not respond to GlobeSt.com queries by deadline.