Paramount Group Inc., a New York-based office REIT, is reportedly considering relinquishing two downtown San Francisco office properties it acquired in 2019 for nearly $950 million. This move reflects the trend of many office landlords attempting to sell buildings purchased during the city’s pre-pandemic market peak.
According to reports from the San Francisco Business Times, Paramount has written down its investment in 111 Sutter St., a 293,000-square-foot property, and defaulted on its loan before securing a cash flow loan. The company also wrote off its investment in Market Center – a nearby two-building complex spanning over 750,000 square feet – by the end of Q4 of last year.
During an earnings call on February 15th CEO Albert Behler stated that these assets are currently undergoing workout mode and there is uncertainty regarding their future inclusion within Paramount’s portfolio. As such, they may not be retained by the company going forward.
The article “Paramount May Give Back San Francisco Office Towers” was originally published on Connect CRE.
