Paramount Group sells 25% interest in One Front Street

Paramount Group (PGRE) announced that it has sold a 25% interest in One Front Street, a 649,000 square foot Class A office building located on the corner of Front and Market Streets in San Francisco, at a gross asset valuation of $255 million. Paramount will continue to own the remaining 75% interest and manage and lease the property. As part of the transaction, Paramount has provided $40.5 million of seller financing for a two-year term at a fixed rate of 5.50%. The Company retained net proceeds of $11.5 million from the sale, after transaction and other costs. “We are excited to announce the sale of this minority interest in One Front Street. With the new mayor’s efforts to revitalize San Francisco, we are confident his initiatives, including a renewed focus on urban renewal, will foster an attractive environment for business.” said Albert Behler, Chairman, Chief Executive Officer & President of Paramount. “Considering our confidence over the long-term in the San Francisco market, this transaction provides access to partner capital to reposition the asset ahead of the upcoming lease-up phase.”