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NEW YORK CITY- Paramount Group, Inc. has announced it is seekingto enter into a joint venture agreement to sell a 10 percentinterest in 1633 Broadway, a 2.5 million-square-foot trophy officebuilding on Broadway between 50th and 51st streets in Manhattan.The transaction, which is subject to customary closing conditions,is expected to close in the second quarter of 2020.

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The transaction values the property at $2.4 billion, orapproximately $960 per square foot. In November 2019, Paramountcompleted a $1.25 billion interest-only refinancing of the propertyat a fixed rate of 2.99 percent, realizing $179 million of netproceeds. Upon completion of this new sale, Paramount anticipatesnet proceeds of approximately $114  million, which willget funneled for general corporate purposes.

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"With this pending sale of a joint venture interest in 1633Broadway, we have successfully proven the value of this enormoustrophy asset at levels well-above what is implied by our stockprice," said Albert Behler, chairman, CEO and president ofParamount, tells GlobeSt.com. "We have always said that we wouldnot hesitate to harvest value when deemed appropriate. To executeon this transaction in the current environment speaks to thequality and desirability of our assets, as well as our team'sunparalleled ability to execute."

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Mariah Brown

Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.