Paramount, Blackstone Get Extension on $975M Loan for San Francisco Offices

Paramount Group and Blackstone have agreed upon the terms of an extension to a $975-million loan on San Francisco’s One Market Plaza ahead of a closely-watched February maturity date, reported the San Francisco Business Times.

A source with direct knowledge of the transaction who was not authorized to speak about it publicly said Paramount and Blackstone, which own roughly equal stakes in the 1.6 million-square-foot One Market, have agreed to pay down the $975 million loan in return for an extension on the loan.

It was not yet clear by how much the pair had agreed to pay down the loan, or until what date the loan’s maturity would be extended, the Business Times reported. The loan went into special servicing ahead of the negotiated extension, which a spokesperson for Paramount and Blackstone called a “purely procedural” step given that a change to the loan’s terms requires approval from the special servicer.

“This property is approximately 96% leased, has seen the most direct leasing volume of any office building in San Francisco over the last three years and recently signed leases at rents above pre-COVID levels,” the spokesperson told the Business Times.