Real Estate Department represents Paramount Group, Inc. and its joint venture partner, an affiliate of the German industrialist von Finck family, in the transaction.
Willkie represented longtime client Paramount Group, Inc., (NYSE: PGRE) and its joint venture partner, an affiliate of the German industrialist von Finck family, in their $300 million refinancing of 712 Fifth Avenue, a 543,000 square foot Class A office and retail building located in the Plaza District of New York.
The new 10-year interest-only loan matures in June 2027 and has a fixed rate of 3.39%. The net proceeds from the refinancing were used to repay the existing $246.5 million loan that bears interest at 4.41% and was scheduled to mature in March 2018. The company’s 50% share of net proceeds, after the repayment of the existing loan, closing costs and required reserves, was approximately $20 million.
The loan was provided by Morgan Stanley Bank, N.A., and Deutsche Bank AG, New York Branch.
The transaction was handled by partner Thomas Henry and associates Jennifer Coffey and Elizabeth Case; law clerk Timothy Dembo and summer associate Francesca Staffetti.