NEW YORK CITY-After RFR Realty bought out the Paramount Hotel for $275 million earlier in the fall, the US real estate arm of Investcorp has snatched up the mezzanine debt on the property from San Francisco-based Fillmore Capital Partners, the company announced Monday morning. Under the deal, Investcorp purchased two existing mezzanine loans with a principal balance of $40 million from Fillmore, who was an existing lender for the Paramount at the time of RFR’s purchase of the hotel.
The transaction marks another partnership between Investcorp and RFR. In 2004, Investcorp acquired the W South Beach and developed the hotel/condo project with RFR. The companies have also partnered on the Miracle Mile retail strip in Las Vegas.
Christopher Hoeffel, a managing director at Investcorp, says the company’s longstanding relationship with RFR helped to “expedite closure of this deal in a very condensed” timeframe. “We’re pleased to have had a chance to provide financing for a transaction involving one of New York City’s most renowned hotels, and one that is in a particularly attractive location,” he says, in a statement.
Built in 1928, the 20-story, 597-key hotel is located at 245 W. 46th St. and was upgraded in 2009 with new guest rooms, bathrooms and public areas. Dallas-based hotel manager Highgate Holdings will continue to operate the Paramount on behalf of the new ownership.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more information visit Asset & Logo Licensing.
