Paramount Sells 425 Eye Street for $157 Million
NEW YORK--(BUSINESS WIRE)--Oct 1, 2018--Paramount Group, Inc. (NYSE:PGRE) (“Paramount” or the “Company”) announced today that it has sold 425 Eye Street, a seven-story, 372,552 square foot office building in the NoMa submarket of Washington, D.C. for approximately $157 million. As of June 30, 2018, the property was 98.7% leased with weighted average in-place gross annualized rents of $46.16 per square foot. 90% of the office space is leased to the U.S. Government. The building is LEED Platinum certified and features an impressive ENERGY STAR score of 100. Additionally, Paramount announced today that it has completed the previously announced sale of 2099 Pennsylvania Avenue for $220 million.
“The sale of 425 Eye Street is another example of our active approach to portfolio management and our ability to crystalize value for our stockholders,” said Albert Behler, Chairman, Chief Executive Officer and President.
The impact of the two asset sales was not included in the Company’s most recent earnings guidance issued on August 1, 2018. Based on the timing of the closing of these sales, the Company no longer expects to receive $0.02 per share of Core FFO in the fourth quarter that had been previously included in its full year 2018 Core FFO guidance.
About Paramount Group, Inc.
Headquartered in New York City, Paramount Group, Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City, Washington, D.C. and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.
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CONTACT: Paramount Group, Inc.
Executive Vice President, Chief Financial Officer
Vice President, Investor Relations
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: REIT CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE
SOURCE: Paramount Group, Inc.
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PUB: 10/01/2018 08:32 AM/DISC: 10/01/2018 08:32 AM