A joint venture between German pension fund Bayerische Versorgungskammer (BVK) and Paramount Group has acquired a retail property at 1600 Broadway for $191.5 million from Sherwood Equities.
The 26,000 square foot retail property, which is located in the heart of 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, $98.0 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 located on the corner of Beale and Mission Streets in San Francisco.
“We are proud to once again partner with BVK in the execution of this transaction,” said Albert Behler, Chairman, CEO and President of Paramount. “M&M’s World has long-served as an icon for global tourism, and its recent 15-year renewal and significant commitment to improve the space is a testament to the long-term value of this iconic Times Square retail location.”