NEW YORK--(BUSINESS WIRE)--
Paramount Group, Inc., (NYSE:PGRE) (“Paramount” or the “Company”) announced today that it has entered into an agreement to sell Waterview, a 24-story, 647,000 square foot, Class A office building in Rosslyn, Virginia for $460 million. Waterview is currently 99% leased, and all of the office space is leased to a single tenant, whose lease expires in January 2028. The sale will result in a financial statement gain of approximately $110 million and a tax gain of approximately $393 million, which will be deferred as part of a like-kind exchange for the acquisition of One Front Street. The transaction, which is subject to customary closing conditions, is expected to close in the second quarter of 2017.
“The sale of Waterview further advances our efforts to enhance shareholder value,” stated Albert Behler, Chairman, Chief Executive Officer and President. “By recycling the capital from this stabilized asset into our recent, more accretive, One Front Street acquisition, we believe shareholders will benefit from our team’s ability to add value by capitalizing on expiring leases that are 20% below market.”
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.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “expects,” “plans,” “estimates,” “projects,” “intends,” “believes” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Paramount’s control and could materially affect actual results, performance or achievements. These factors include, without limitation, the Company’s ability to satisfy the closing conditions to the transaction described above. Paramount does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise.
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