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 Timesreported. 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.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).