Paramount Closes on $595M Tower Acquisition

NEW YORK CITY-Paramount Group Inc. has closed on its acquisition of 31 W. 52nd St., a 729,011-rentable-sf office property located between Fifth and Sixth avenues here. The 30-story building, which previously served as the US headquarters for Deutsche Bank AG, was sold by Deutsche Bank and others to Paramount for $595 million.

Built in 1987, this trophy property was co-developed by Hines and CBS. In addition to the office space in the building, Paramount is acquiring a contract to purchase the 19,400-sf condominium unit that presently houses the Museum of Arts and Design. The Museum is expected to relocate to Two Columbus Circle in 2008.

“This trophy-grade property is a spectacular fit with our existing New York portfolio of renowned office properties,” notes Albert Behler, president & CEO of Paramount Group in a prepared statement. “The building benefits from an optimal location in the sought-after Plaza District submarket, steps away from several major subway lines and within walking distance of Central Park, Rockefeller Center and numerous luxury hotels and retail stores, restaurants and museums. The attendant views of the park, Rockefeller Center and numerous other Manhattan landmarks are among the best in the city.”

The property is more than 95% leased to corporate names such as Clifford Chance, Financial Security Assurance, Toronto-Dominion Bank and Citigroup. The property’s retail space on W. 53rd Street is occupied by the MOMA Retail store. Paramount Group represented itself. Deutsche Bank Securities Inc. acted as financial advisor to Deutsche Bank AG.