Paramount Group, Inc. (NYSE: PGRE) is showing resiliency this morning, showing a small decrease of 0.43% to $4.63. With the previous session’s close of $4.65, PGRE shares had gained 0.87%.
According to a statement released by Paramount Group (PGRE), a 74,000 square foot lease was signed with Citizens at 1301 Avenue of the Americas. Under the administration of Paramount Group, this 1.7 million square foot Class A office building between 52nd and 53rd Streets is still drawing tenants in the middle of Midtown Manhattan.
Greeting Citizens Bank as the newest member of its prestigious tenant roster, Paramount Group emphasizes the importance of this project in boosting leasing activity in the Avenue of the Americas neighborhood and across its portfolio. The Paramount Group also unveiled the upcoming Paramount Club, an exclusive club reserved for business executives throughout its New York properties.
The Paramount Club, which is slated to open on May 1, 2024, will be a crucial differentiator in the industry. In addition, a regular quarterly cash dividend of $0.035 per share of common stock for the period of January 1, 2024, to March 31, 2024, was recently announced by the Paramount Board. The dividend is scheduled to be paid to shareholders who were registered as at March 28, 2024, at the latest, on April 15, 2024.
In a calculated move, Paramount Group and its joint venture partner extended and changed the terms of the mortgage debt that was already in place at One Market Plaza. This magnificent asset, a two-building complex totaling 1.6 million square feet and located in San Francisco’s South Financial District, had a $975 million debt that was due to mature on February 6, 2024.
The joint venture paid down $125 million of the debt, bringing the total amount due to $850 million. With a fixed interest rate of 4.08%, the restructured loan has a February 2027 maturity date and a possible one-year extension, subject to certain requirements. In spite of the difficult conditions in the financial markets, Paramount Group’s ability to successfully complete the loan modification highlights the asset’s quality as well as the dedication and competence of its sponsor.
