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Thursday, 22 August 2019

Paramount to Pay $722Mln for San Francisco Office Complex

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Paramount Group Inc. has entered into an agreement to buy the 753,000-square-foot Market Center office complex in San Francisco for $722 million, or $958.83/sf.

The New York REIT is purchasing the two-building property, at 555 and 575 Market St., from Blackstone Group, which had bought it three years ago for $510 million. Paramount expects to bring in a venture partner before closing the deal in the fourth quarter.

Market Center serves as collateral for a $382 million loan that's securitized through BX Trust, 2018-MCSF. The floating-rate loan, with a 2.901 percent coupon, pays only interest until next year.

The complex is 94 percent leased to more than 50 tenants, including Uber, which is in 235,955 sf under a lease that expires in July 2023. Cash flow at the property was $26.23 million at the end of last...

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Additional Info

  • Syndicate to Realpoint: No
  • Cities: San Francisco
  • States: California
  • Sector: Office
  • Subject: Property Acquisitions (ACQ)
  • Valuation: More than $150 million
  • Private: Yes
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Dan Moynihan

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