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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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“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

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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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