According to sources familiar with the matter, Paramount Group and its lenders are considering selling the debt on Market Center in San Francisco’s Financial District before a $402 million acquisition loan matures. The potential sale is being advised by Eastdil Secured and could result in a buyer acquiring both the loan and ownership of Market Center, which consists of two office buildings totaling 750,000 square feet at 555-575 Market St.
This would be the largest office property to hit the market since before COVID-19. In 2019, Paramount Group purchased Market Center from Blackstone for $722 million in partnership with an undisclosed joint venture partner. However, concerns about its future have led to doubts expressed by Paramount during their February earnings call where they announced writing off their investment in this property.
This write-off comes after another one made last year for their investment in another downtown San Francisco office tower called 111 Sutter Street. Both properties have been impacted by expiring leases as well as declining office market conditions.
