Wells Fargo, Morgan Stanley Grants $860 Million On 1301 Avenue Of The Americas

Wells Fargo and Morgan Stanley are the lenders behind the $860 million refinance of Paramount Group’s 1301 Avenue of the Americas.

Paramount announced the transaction on the 1.7 million Sq Ft. Midtown office early Tuesday, although didn’t identify the lenders at the time.

Wells Fargo and Morgan Stanley served as the transaction’s co-leads, sources said, with each lender providing $430 million in debt, broken down into a $355 million first mortgage loan and a $75 million mezzanine loan.

The 45-story trophy asset, between 52nd and 53rd streets, is 71.5 percent leased to a variety of tenants and includes 30,000 square feet of the ground floor and concourse level retail space. The building provides lower-level access to Rockefeller Center and features views across Central Park and Midtown.

The five-year, interest-only loan includes a $500 million tranche with a fixed-rate interest rate of 3.11%, plus a $360 million tranche with a floating rate of LIBOR plus 2.65 percent. 

The debt retires an $850 million loan that was provided by a trio of life insurance companies back in October 2016: AXA Equitable Life Insurance Company, MetLife and New York Life. The five-year loan was set to mature in November, but the refinance has pipped it to the post. 

The deal marks one of the largest offices refinances to close post-COVID in New York City. 

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