According to sources familiar with the matter, Paramount Group and its lenders are considering selling the debt on Market Center before a $402 million acquisition loan for the two-building office property in San Francisco’s Financial District matures. The New York City-based office REIT and lender ING have enlisted Eastdil Secured as an advisor.
If listed for sale, a potential buyer could acquire the loan and take ownership of Market Center, which is a 750,000-square-foot office complex located at 555-575 Market St. This would be the largest office property to hit the market since before COVID-19, as reported by San Francisco Business Times.
In 2019, Paramount Group purchased Market Center from Blackstone for $722 million in partnership with an undisclosed joint venture partner. However, doubts about its future have arisen as evidenced by Paramount’s announcement that it has written down its investment in February this year.
This write-down comes after another one last year when Paramount wrote off their investment in another downtown San Francisco property -111 Sutter – due to significant lease expirations amidst declining office fundamentals.
The original article can be found on Connect CRE website.
