Paramount Group and Blackstone have reached an agreement to extend a $975 million loan on San Francisco’s One Market Plaza, ahead of its upcoming maturity date in February. According to sources familiar with the transaction, both companies will pay down the loan in exchange for an extension.
The exact amount that will be paid off and the new maturity date are still unknown at this time. However, it has been confirmed that the loan went into special servicing prior to this extension being negotiated. A representative for Paramount and Blackstone stated that this was a routine step as any changes to the terms of a loan require approval from the special servicer.
The spokesperson also highlighted One Market Plaza’s strong leasing performance, with 96% occupancy and recent leases signed at above pre-COVID rental rates. This news comes amidst high demand for office space in San Francisco over recent years.
Overall, Paramount Group and Blackstone’s successful negotiation reflects their expertise as major players in commercial real estate financing. The two companies have shown their commitment towards maintaining stability within their portfolio during these uncertain times by securing an extension on such a significant loan amount without relying on external assistance or funding.
