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 San Francisco Business Times reported that Eastdil Secured has been hired as an advisor by New York City-based office REIT Paramount and lender ING.
If listed for sale, potential buyers could acquire the loan and take ownership of Market Center, a 750,000-square-foot complex located at 555-575 Market St. This would be the largest office property to hit the market since before COVID-19, according to reports from Business Times.
In 2019, Paramount partnered with an undisclosed joint venture partner to purchase Market Center from Blackstone for $722 million. However, doubts about its future have already been expressed by Paramount after it wrote off its investment in February this year due to declining office fundamentals caused by significant lease expirations at both properties – including another downtown San Francisco tower called 111 Sutter which was also written off last year.
