NEW YORK CITY-The owners of the Paramount Building at 1501 Broadway have secured $130 million in financing from Cantor Commercial Real Estate to fund a strategic reinvestment program at the Art Deco office tower near Times Square. Meridian Capital Group SVP Keith Kurland and managing director Aaron Appel negotiated the financing on behalf of Paramount Leasehold LP, a group led by Levin Properties.

“Through a tightly managed marketing and negotiation process, we were not only able to achieve their objectives in this regard, but also procured the lowest spread and fixed-rate on a deal of this magnitude post-Lehman,” Kurland says in a release.  The 10-year, full-term interest-only loan features an annual fixed-rate of 3.16%.

“The strategic renovations we are making at the Paramount Building will serve to elevate the tower's competitive edge and reflect our dedication to the high-quality maintenance of this iconic property,” says William Farber, co-managing partner of Paramount Leasehold, in a release. “Tenants will benefit from a more modern and efficient work environment that still embraces the building's rich history.”

An Avison Young team headed by Arthur Mirante, principal and tri-state president for the firm, is advising Paramount Leasehold on the repositioning. Avison Young was hired as the 33-story property's leasing agent this past fall.

The financing from Cantor will facilitate ownership's plan to invest more than $50 million on improvements intended to enhance the 780,000-square-foot tower's ability to support the business operations of modern tenants, in particular creative office and technology users. Among other things, Paramount Leasehold plans lobby renovations to provide better flow of traffic to and from the office floors. Further, along with improvements the floors and common areas, the property's ownership is considering an additional entrance on 43rd Street that could include a third-floor sky lobby reconnecting the tower's elevator banks.

With this commitment, Mirante says in a release, “1501 Broadway's market position will be further enhanced to attract a wide range of tenants seeking an exciting combination of modern, up-to-date amenities, a premier Times Square location, and a landmark business address with unique historical charm.” Along with Mirante, the Avison Young leasing team includes Michael Gottlieb, principal; Whitney Meyer, SVP; and Thomas Hines, associate.

Avison Young's Edward Walsh, principal and managing director of project management; and Joseph Polise, director of construction, are also part of the team managing the assignment. Tobin | Parnes Design Enterprises is the architect for the project.

Designed by the Chicago architectural firm of Rapp and Rapp, which also designed several movie theatres in the Balaban & Katz chain, 1501 Broasdway opened in 1926 as the East Coast headquarters of Paramount Pictures. It formerly housed the Paramount Theater, a prominent venue for both movies and live performances until it closed in 1964. Its office tenant roster includes the American Federation of Musicians, Clear Channel and Toshiba.

The tower was last renovated in 2006, and offers a variety of office space availabilities ranging from several hundred square feet to a large block of more than 100,000 square feet. The tower's street level currently houses destination restaurants Hard Rock Café, Bubba Gump Shrimp and Carmine's, among others, along with retail outlets for Levi's, Lids and Yankee Clubhouse.