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Paramount Claims San Francisco’s Market Center for $722M, Finalizes $402M 55 Second St. Deal
New York-based Paramount Group Inc. completed the acquisition of a 44% joint venture interest in 55 Second Street in San Francisco (pictured). In an unrelated transaction, the company also said it is buying Market Center, a two-building Class A office complex comprising 753,000 square feet in San Francisco’s South Financial District for $722 million, or $959-per-square-foot.
The 94%-leased Market Center complex consists of 555 Market St. and 575 Market St. comprising 280,000 square feet and 473,000 square feet, respectively. The transaction is expected to close in Q4 2019, and Paramount expects to bring in a joint venture partner prior to closing.
The 55 Second Street property was valued at roughly $402 million, or $1,039-per-square-foot. In connection with the previously announced acquisition, the existing $137.5 million mortgage loan will remain in place and be upsized by an additional $50 million. The $187.5 million mortgage loan is interest-only at a fixed interest rate of 3.88%, and matures in October 2026.
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