• 0
  • Home
  • About Us
  • What We Do

Shopping Cart

GPAM
  • Home
  • About Us
  • What We Do

Paramount Group plans virtual showings to fill huge Barclays space

Paramount CEO Albert Behler and 1301 Sixth Avenue (Credit: Behler by Sean Zanni/Patrick McMullan via Getty Images; Google Maps)
Paramount CEO Albert Behler and 1301 Sixth Avenue (Credit: Behler by Sean Zanni/Patrick McMullan via Getty Images; Google Maps)

With Barclays’ 500,000-square-foot lease at 1301 Sixth Avenue set to expire at the end of this year, landlord Paramount Group had set a goal of pre-leasing half of the investment bank’s space in 2020.

The coronavirus pandemic is complicating those plans, as leasing activity in Manhattan has come to a halt. But the firm is finding ways to keep potential tenants interested.

The original year-end leasing goal, “which was a tall order in itself pre-Covid-19, just got incredibly taller,” chairman, CEO and president Albert Behler said on a quarterly earnings call Thursday. “Most likely this will now be a 2021 achievement, although it remains our immediate priority.”

He continued, “We are doing everything we can to lease this space. While there is no substitute for a presentation from our leasing team during live tours, in the absence of being able to physically tour space, we will provide virtual tours to prospective tenants.”

Paramount’s head of leasing, Peter Brindley, elaborated. “We are in the process of filming our marketing floor to ensure that we do not miss an opportunity during this period of time,” he said, noting the firm’s confidence in the Sixth Avenue submarket and the property’s location and quality.

Paramount saw 200,000 square feet of leasing activity in the first quarter across its New York and San Francisco portfolio. Income per share was $0.27, a slight increase from $0.24 a year prior. The firm has withdrawn its guidance for 2020 in light of the pandemic.

Read more

  • Aby Rosen in talks to buy Paramount’s East Side tower for $400M
  • Aby Rosen ditches 900 Third Avenue buy
  • Paramount’s $1.25B refi of 1633 Broadway was 3rd largest loan of 2019

Like other firms in the current economic environment, Paramount has focused on building up liquidity, which currently includes $400 million in cash on the balance sheet and $800 million remaining in its revolving credit facility. CFO and treasurer Wilbur Paes noted that the company is also deferring $50 million in capital expenditures from this year to 2021.

Pending sales are set to add another $215 million to Paramount’s cash pile. The firm announced last month that it had an agreement to sell its last remaining property in Washington, D.C., for $115 million, with closing expected in the fourth quarter. It has also announced the sale — to close next month — of a 10-percent stake in 1633 Broadway in a deal that values the building at $2.4 billion. The buyers were not disclosed, but are both “reliable, well-financed institutions,” Behler said.

Behler also explained why the firm did not sell a larger stake of 1633 Broadway: taxes. “1633 Broadway is the largest asset in our portfolio, and also happens to be the longest-owned Paramount asset, so as you can imagine it also has the largest tax gain associated with it given its basis,” he said. “We needed to ensure that we had the ability to retain the proceeds from the sale, while taking some chips off the table at a full and fair valuation.”

Paramount’s $1.25 billion refinancing of 1633 Broadway was the 3rd largest NYC real estate loan of 2019. The company was also reportedly in talks to sell 900 Third Avenue to Aby Rosen’s RFR Realty for $400 million, though that deal is on hold.

The landlord was able to collect about 94 percent of total billings in April, in line with prior months — although tenants representing about 16 percent of the rent roll asked for deferrals.

“Some of these requests are what I would characterize as opportunistic in nature,” Behler said, adding that the high rate of collection “reflects the benefits of our high-quality, office-centric portfolio, where retail serves as an amenity to the office tenants, and total rents we collect from retailers is less impactful for Paramount overall.”

The post Paramount Group plans virtual showings to fill huge Barclays space appeared first on The Real Deal Los Angeles.

Powered by WPeMatico

  • 01 May 2020
  • The Real Deal
  • Uncategorized
  •  Like
J. Crew nears bankruptcy, Brooks Brothers seeks buyer →← “Owners are very scared:” Tensions boil to the surface in California rent strike call
  • Recent Posts

    • Hoteliers sound the alarm on looming distress  May 24, 2025
    • Growth markets see retail boom even with tariff uncertainty May 24, 2025
    • Westchester resi project gets city OK after union drops objection May 23, 2025
    • WATCH: ‘Father of CMBS’ Ethan Penner to run for governor of California May 23, 2025
    • Fashion Island office fetches $756 psf May 23, 2025
  • Recent Comments

    • Archives

      • May 2025
      • April 2025
      • March 2025
      • February 2025
      • January 2025
      • December 2024
      • November 2024
      • October 2024
      • September 2024
      • August 2024
      • July 2024
      • June 2024
      • May 2024
      • April 2024
      • March 2024
      • February 2024
      • January 2024
      • December 2023
      • February 2023
      • January 2023
      • December 2022
      • November 2022
      • October 2022
      • September 2022
      • August 2022
      • July 2022
      • June 2022
      • May 2022
      • April 2022
      • March 2022
      • February 2022
      • January 2022
      • December 2021
      • November 2021
      • October 2021
      • September 2021
      • August 2021
      • July 2021
      • June 2021
      • May 2021
      • April 2021
      • March 2021
      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018
      • October 2018
      • September 2018
      • August 2018
      • July 2018
      • June 2018
      • May 2018
      • April 2018
      • March 2018
      • February 2018
      • January 2018
      • December 2017
    • Global Property and Asset Mangement, Inc.
      137 North Larchmont
      Los Angeles, California 90010
      +1 213-427-1127

    © 2025 GPAM