Paramount Group has announced a minority stake sale in its 900 Third Avenue property at a $210 million gross asset valuation.
The deal will give the buyer, which was undisclosed, 45 percent of the equity in the Midtown, Manhattan Class A office building. Paramount will continue controlling the remaining 55 percent.
The 36-story tower, designed by Emery Roth and Sons, Cesar Pelli, and Viñoly Design Architects, spans roughly 600,000 square feet. The floor spaces range from 4,000 to 18,000 square feet. Plus, the lobby was recently renovated and the building has 12 passenger and a single freight elevator. Some tenants at 900 Third include Bank of America, Littler, Carl Marks Advisors, and Stellex Capital Management.
In addition to 900 Third, Paramount operates 10 other properties in New York City. Since the mid-1990s, the REIT has been focusing on Class A office assets in not only New York — but San Francisco and Washington D.C too.
“We are excited to announce the sale of this non-controlling interest in 900 Third. This transaction underscores the underappreciated value of our assets in the market," Albert Behler, chairman, CEO, and president of Paramount, said in a statement.
"Furthermore, this deal strengthens our balance sheet and offers enhanced flexibility in our capital allocation strategy.”
While concerns have escalated since the pandemic that remote work would lead to the death of office, New York notably has seen a huge revival in the asset class. In Avison Young's recent fourth-quarter Manhattan property sales report, the office sector stood out with 13 transactions for sales of $1.6 billion, which surged 86 percent and 98 percent from the previous three months, respectively.