By Chris Wack
Paramount Group Inc. shares were up 18% to $11 in premarket trading Friday after the company said a joint venture it owns with Bayerische Versorgungskammer bought a retail condominium at 1600 Broadway in New York City for $191.5 million from Sherwood Equities.
The company said the 26,000-square-foot retail property, which is located in New York City’s Times Square, is 100% leased to Mars Inc. and serves as the flagship location for M&M’s World.
In connection with the acquisition, the joint venture obtained a 10-year, $98 million interest-only loan that has a fixed rate of 3.45%. Paramount owns a 9.2% stake in the property and will serve as the manager of the asset.
This acquisition marks the second time Paramount has partnered with BVK. BVK also owns a 31.1% stake in 300 Mission Street, a 24-story, LEED Platinum, Class A office tower in San Francisco.
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