Own a New York skyscraper: Paramount Group set to raise $2.3 billion in largest REIT IPO ever

Paramount Group, a REIT owning 12 premier office buildings in New York, Washington, DC and San Francisco, announced terms for its IPO on Thursday. The New York, NY-based company plans to raise $2.3 billion by offering 131 million shares at a price range of $16 to $19. At the midpoint of the proposed range, it would command a fully diluted market value of $4.3 billion.

Most of the company's rent comes from its New York City portfolio, which includes six office buildings. Paramount's launch arrives just one day after another REIT, Oaktree-backed STORE Capital (STOR), set terms for its $495 million IPO.

Paramount Group, which was founded in 1978 and booked $417 million in historical revenue for the 12 months ended September 30, 2014, plans to list on the NYSE under the symbol PGRE. BofA Merrill Lynch, Morgan Stanley, Wells Fargo Securities and Deutsche Bank are the joint bookrunners on the deal. It is expected to price during the week of November 17, 2014.