Paramount Gobbles Deutsche Bank Tower for $500 M.-Plus
MORE Commercial Breaks
The Paramount Group paid more than $500 million for Deutsche Bank’s tower of approximately 700,000 square feet at 31 West 52nd Street, according to a source, bringing the German bank’s tower into the hands of a German landlord.
Paramount, led by CEO Albert Behler and backed by investors in Germany, bought 60 Wall Street earlier this year for $1.2 billion, downtown’s largest ever building deal. The Deutsche Bank tower buy could make the firm particularly hungry to shed its 1177 Avenue of the Americas, the one million-square-foot midtown tower currently on the selling block. Real estate insiders say the price is likely to reach at least $1 billion.
The terms of the Deutsche Bank tower acquisition were signed earlier this month, a bank spokesman confirmed, though the final price could tell much about the market. Few building sales of at least $500 million have closed this last half of 2007, and if the final agreement for the tower was $550 million, for example, the per-square-foot price would be in the neighborhood of $790 a square foot, well under the $1,500 a square foot that some had thought it could go for.
Paramount Group declined to comment, as did a representative from brokerage Jones Lang LaSalle, which represented Paramount on the sale.
444 East 57th Street
This rarely available apartment in one of the best prewar condos in the... More details |
|
How is a $550,000,000 purchase of a 700,000 square foot building a $1,250 psf purchase price? Isn't that a $785.71 psf purchase price? A far cry from $1,250. Considering you have the purchase price and the square footage in your article, that is a pretty embarassing mistake.
Which would mean it sold for approximately half of what they expected? None of this makes any sense.
Which would mean it sold for approximately half of what they expected? None of this makes any sense.