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Paramount Completes $227M Acquisition of Historic San Francisco Building
New York-based Paramount Group, Inc. acquired 111 Sutter Street, an historic 22-story office property in San Francisco from Chicago-based JLL Income Property Trust for $227 million. The 293,000-square-foot, architecturally significant building is in the North Financial District, one block from the Market Street corridor.
A joint venture partner was brought in to acquire 51% of the equity interest, though Paramount will manage and lease the roughly 70% leased asset. The JV completed a $138.2 million financing. The four-year loan is interest only at LIBOR, plus 215 basis points with three one-year extension options.
Paramount’s Albert Behler says, “We plan to leverage our position as one of San Francisco’s largest landlords to meaningfully increase the building’s net operating income. In addition to the existing vacancy, approximately 50% of the currently occupied office space is scheduled to expire through 2021, providing us a tremendous opportunity to create value for our shareholders as we proactively manage and lease the asset.”
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- ◦Sale/Acquisition
