Preferred Equity Investments

12 Months Ended

Dec. 31, 2016

6.	Preferred Equity Investments

As of December 31, 2016, we own a 24.4% interest in PGRESS Equity Holdings L.P., a consolidated entity that owns certain preferred equity investments. The following is a summary of the preferred equity investments.

						The Company
(Amounts in thousands, except square feet)	Paramount					As of December 31,
Preferred Equity Investment	Ownership		Dividend Rate		Initial Maturity	2016		2015
470 Vanderbilt Avenue ⁽¹⁾		24.4%		10.3%	Feb-2019	$	35,613	$	35,305
2 Herald Square⁽²⁾		24.4%		10.3%	Apr-2017		19,438		18,636
Total preferred equity investments						$	55,051	$	53,941

⁽¹⁾

Represents a $33,750 preferred equity investment in a partnership that owns 470 Vanderbilt Avenue, a 650,000 square foot office building in Brooklyn, New York. The preferred equity has a dividend rate of 10.3%, of which 8.0% was paid in cash through February 2016 and the unpaid portion accreted to the balance of the investment. Subsequent to February 2016, the entire 10.3% dividend is being paid in cash.

⁽²⁾

Represents a $17,500 preferred equity investment in a partnership that owns 2 Herald Square, a 369,000 square foot office retail property in Manhattan. The preferred equity has a dividend rate of 10.3%, of which 7.0% is paid currently and the remainder accretes to the balance of the investment. The preferred equity investment has two one-year extension options.