X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Paramount Group, Inc. and a corporate pension trust advised by JP Morgan Asset Management have entered a joint venture to recapitalize 31 W. 52nd St. Paramount acquired the 776,849-square-foot 31 W. 52nd St. last December for $595 million. Terms of the JV were not disclosed, and calls to industry sources for figures on comparable recaps were not returned by deadline.

In a statement, Steve Kohn, president of Cushman & Wakefield Sonnenblick Goldman says, the JV typifies a trend in the current market: well-leased buildings with good debt in place are the only viable option for investors and banks. Value-add plays are out of the picture for the moment, he adds. C&WSG arranged the joint venture.

Tenants at the 30-story 31 W. 52nd–which formerly served as Deutsche Bank’s US headquarters–include law firm Clifford Chance as well as several financial services companies with trading operations on the premises. “We were thrilled to acquire 31 W. 52nd St. in December, and our enthusiasm for the property has increased in the ensuing months by also acquiring the retail condominium of the property,” Albert Behler, president and CEO of Paramount, says in a release. As reported by GlobeSt.com in early January, the 19,400-square-foot retail condo housed the Museum of Arts and Design, which relocated to 2 Columbus Circle in September.

In announcing the acquisition last January, Behler said in a prepared statement that 31 W. 52nd “benefits from an optimal location in the sought-after Plaza District submarket–steps away from several major subway lines–and within walking distance of Central Park, Rockefeller Center and numerous luxury hotels and retail stores, restaurants and museums.” Commenting on the JV, Alex Hernandez, senior director of C&WSG, says in a release, “The quality of the tenancy and the building itself, together with the property’s superior location among the most coveted office addresses in the world, were of great appeal to the investors.” Built in 1987, this trophy property was co-developed by Hines and CBS.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.