NEW YORK CITY—With proceeds from the underwriters' allotment included for good measure, Paramount Group Inc. on Monday closed its initial public offering with 150.65 million shares sold. The $2.6-billion sale exceeded the previous record-holder among REITs, Douglas Emmett's 2006 IPO, by $1 billion.

PGRE says it will use the $2.5 billion of net proceeds from the IPO to pay down debt and for general corporate purposes, capital expenditures and potential future acquisitions. The office REIT priced its offering this past Tuesday at $17.50 per share; common shares were trading at $18.56 per share earlier Monday.

The company's SEC filing earlier this month listed a dozen class A assets in Paramount's current portfolio, totaling 10,365,987 square feet. In Midtown Manhattan, they include the company's headquarters at 1633 Broadway along with 1301 and 1325 Ave. of the Americas, 31 W. 52nd St., 900 Third Ave. and 712 Fifth Ave; while Paramount's DC assets include 425 Eye St., Liberty Place, 1899 and 2099 Pennsylvania Ave. in the nation's capital and Waterview in Rosslyn, VA. In San Francisco, it owns One Market Plaza, and recently announced that it would buy a second asset in that city, 50 Beale St., for $395 million from a joint venture of Mitsubishi Estate New York and Rockefeller Group US Premier Office Fund LP.

The properties were 92.1% leased to 260 tenants as of Sept. 30, with rents averaging $65.20 per square foot. They range from $42.93 per square foot for 425 Eye to $96.22 to 712 Fifth. The Manhattan portfolio represents 75.6% of annualized rent, while One Market Plaza represents 12.7% and the DC holdings provide the remaining 11.7%, according to Paramount's filing.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.