Rithm Capital Completes Acquisition of Paramount Group
Rithm Capital Corp., a global alternative asset manager, has successfully acquired Paramount Group, Inc. (NYSE: PGRE), a real estate investment trust focused on Class A office properties in New York City and San Francisco. This acquisition significantly enhances Rithm's asset management platform, expanding its commercial real estate footprint with 13 owned and 4 managed high-quality office assets. Rithm plans to further develop and amenitize the portfolio, leveraging its owner-operator model to drive growth and value in what it believes to be recovering office markets.
Ex-Paramount CEO Albert Behler shows up to office, gets shown the exit
Former Paramount Group CEO and chairman, Albert Behler, was escorted out of his old office at 1633 Broadway after showing up despite no longer being employed by the company. This bizarre incident occurred on Rithm Capital's first day as the new owner of Paramount Group, following their $1.6 billion acquisition. Behler's departure caps a tumultuous year marked by undisclosed payments, an SEC investigation, and a rejected $34 million golden parachute proposal.
Reassessing Paramount Group (PGRE) Valuation After Its 41% One-Year Share Price Rebound
Paramount Group (PGRE) has seen a significant 41% share price rebound over the past year, despite the office real estate sector being out of favor. While its price-to-sales ratio of 2.1x suggests overvaluation compared to peers, a Discounted Cash Flow model paints an even bleaker picture, indicating the stock is trading well above its estimated fair value. This raises questions about whether the current market optimism is based on sentiment rather than improving fundamentals.
Shareholders approve sale of office landlord Paramount Group, reject CEO’s $34M golden parachute
Shareholders of Paramount Group have approved the sale of the office landlord to Rithm Capital for $6.95 a share, despite an earlier lower bid. Concurrently, they voted against a $34 million "golden parachute" for CEO Albert Behler, influenced by proxy advisers citing governance issues and undisclosed payments. Despite the non-binding vote, Paramount indicated it still intends to grant Behler his bonus.
1,001,440 Shares in Paramount Group, Inc. $PGRE Bought by Hudson Bay Capital Management LP
Hudson Bay Capital Management LP recently acquired a new position in Paramount Group, Inc. (NYSE:PGRE), purchasing over 1 million shares valued at approximately $6.11 million. This move contributes to the 65.64% institutional ownership of the financial services provider. Analysts currently have a "Hold" rating on Paramount Group with a consensus target price of $6.45, as the stock shows mixed financial performance with a recent EPS beat but negative ROE and net margin.
Reassessing Paramount Group (PGRE) Valuation After Its 41% One-Year Share Price Rebound
Paramount Group (PGRE) has seen a significant 41% share price rebound over the past year, despite the office real estate market facing challenges. While its price-to-sales ratio of 2.1x suggests it's currently overvalued compared to peers, Simply Wall St's DCF model indicates the stock is trading well above its estimated fair value of $0.44. Investors should consider the company's shrinking revenue and analyst targets before assuming a full turnaround is priced in.
Paramount Group (NYSE:PGRE) Sees Strong Trading Volume - Should You Buy?
Paramount Group (NYSE:PGRE) experienced a significant trading volume increase of 214%, with 8,595,069 shares traded, closing near $6.62. Analysts have a consensus "Hold" rating with a $6.45 target price for the real estate investment trust. Despite positive earnings and revenue beats, the company shows negative profitability metrics like a PE of -14.71 and a negative net margin.
Paramount Group Inc - Sponsor A proposes to buy Paramount shares at $6.95 per share - SEC filing
An SEC filing reveals that Sponsor A is proposing to acquire shares of Paramount Group Inc. (PGRE) for $6.95 per share. This news comes amidst other recent activities for Paramount Group, including earnings reports and analyst rating adjustments. Paramount Group is a REIT focused on Class A office properties in New York City and San Francisco.
Paramount Group Updates on Merger Proposal
Paramount Group (PGRE) has provided an update on its merger proposal with Rithm Capital Corp. The company received a new, less favorable proposal from "Sponsor A" offering $6.95 per share but lacking committed financing. The Board has reaffirmed its support for the existing merger agreement with Rithm Capital Corp.
Paramount Group board approves $5 million in transaction bonuses amid pending merger
Paramount Group, Inc. announced that its board of directors approved $5 million in transaction bonuses for executive officers and non-employee directors related to its pending merger with Rithm Capital Corp. Executive Vice President Peter Brindley and CFO Ermelinda Berberi will each receive $950,000, while non-employee directors involved in the advisory transaction committee will receive $100,000, and other directors $50,000. These bonuses are contingent on continued employment or service and the completion of the merger.
Paramount Group board approves $5 million in transaction bonuses amid pending merger
Paramount Group, Inc. (NYSE:PGRE) announced that its board of directors approved $5 million in transaction bonuses for key executives and non-employee directors related to its pending merger with Rithm Capital Corp. Executive Vice President Peter Brindley and CFO Ermelinda Berberi will each receive $950,000, while non-employee directors will receive cash retainers ranging from $50,000 to $100,000. These payments are contingent on continued employment or service through the merger's completion or by June 30, 2026.
Paramount Group board approves $5 million in transaction bonuses amid pending merger
Paramount Group, Inc. (NYSE:PGRE) announced that its board of directors approved $5 million in transaction bonuses for key employees and extra cash retainers for non-employee directors. These compensatory arrangements are in connection with the company's pending merger with Rithm Capital Corp. The bonuses and retainers are contingent on continued employment or service through the completion of the mergers.
Paramount Group, Inc. $PGRE Shares Sold by Long Pond Capital LP
Long Pond Capital LP significantly reduced its stake in Paramount Group, Inc. ($PGRE) by 80.6% in Q2 2025, selling over 9.4 million shares. Despite this large sale, other institutional investors like Nuveen LLC and American Century Companies Inc. either opened new positions or substantially increased their holdings, indicating mixed sentiment. Paramount Group's stock trades around $6.59 with a negative P/E, though it recently beat EPS and revenue estimates, and analysts maintain an average "Hold" rating.
Paramount Group Locks In $175M Refi for Manhattan Tower
Paramount Group has successfully refinanced its 600,000-square-foot Class A office building at 900 Third Ave. in Midtown Manhattan with a $175 million loan from New York Life Insurance. This refinancing, arranged by Eastdil Secured, comes after the building's value struggled post-COVID, leading Paramount to sell a 45 percent stake earlier in the year. The company is also undergoing an SEC investigation due to disclosed payments to companies affiliated with its CEO and a no-bid contract to a company tied to an ex-girlfriend.
Paramount Group Investor Alert By The Former Attorney General Of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Paramount Group, Inc. - PGRE
Kahn Swick & Foti, LLC (KSF), led by former Louisiana Attorney General Charles C. Foti, Jr., is investigating the proposed sale of Paramount Group, Inc. (NYSE: PGRE) to Rithm Capital Corp. The firm is examining whether the offered price of $6.60 per share adequately values the Company and if the sale process was proper. Shareholders who believe the transaction undervalues Paramount Group are encouraged to contact KSF for a discussion of their legal rights.
Paramount Group, Inc. (NYSE:PGRE) Given Consensus Recommendation of "Reduce" by Brokerages - MarketBeat
Paramount Group, Inc. (NYSE:PGRE) has received a consensus "Reduce" recommendation from brokerages, with an average twelve-month target price of $5.6125, below its current share price of $6.54. Institutional investors hold 65.64% of the company's stock, indicating increased confidence. The company recently surpassed Q3 earnings and revenue estimates and provided FY 2025 guidance.
Rithm to acquire Paramount Group in $1.6B deal
Rithm Capital Corp., the parent company of Newrez, announced it will acquire Paramount Group for $1.6 billion. The deal includes 13 owned and 4 managed office properties in New York and San Francisco, signaling Rithm's bet on the recovery of office markets in gateway cities. This acquisition expands Rithm's commercial real estate and asset management platforms, following several other recent large acquisitions.
Major Office Landlord Is Exploring Sale of the Company
Paramount Group, a significant office landlord in New York City and San Francisco, is exploring strategic alternatives for its business, including a potential sale of the company. The firm has engaged Bank of America and Latham & Watkins for this review. The outcome is not assured and could range from a full sale to recapitalization or a joint venture.
Paramount Group plans to sell $402M debt on SF’s Market Center
Paramount Group is planning to sell a $402 million debt backed by its Market Center complex in San Francisco, an office property it had previously written down to zero investment. The move comes as the debt approaches maturity in January, allowing a new owner to seek new financing for the roughly 50 percent occupied building. The potential sale highlights the significant decline in value for San Francisco office properties, with Market Center's estimated value now less than a third of its 2019 purchase price.
Owner of 60 Wall Street makes bold bet with $250M revamp: ‘Sink or swim for downtown’
Paramount Group is investing $250 million to revamp 60 Wall Street, a vacant 1.6 million square-foot tower in the struggling Financial District. This significant renovation aims to attract new tenants and revitalize downtown Manhattan's office market, which faces high vacancy rates. The project is seen as a crucial test for the district's future, with many eyes on whether Paramount can secure major leases.
Paramount Group defies shareholders by reappointing chronically absent director
Midtown-based office landlord Paramount Group reappointed director Katharina Otto-Bernstein despite nearly 56% of shareholders voting against her re-election due to her missing 40% of board meetings last year. The company rejected her resignation, citing "scheduling conflicts," a reason Institutional Shareholder Services considers acceptable only in a director's first year. This defiance of shareholder will, along with a narrow vote against CEO Albert Behler's $20 million pay package, highlights a rare investor rebuke in corporate governance.
Investor poised to surrender pair of downtown SF properties
Paramount Group is likely to surrender two downtown San Francisco office properties, Market Center and 111 Sutter St., to its lender as debt on the buildings far exceeds their current market value, both now marked down to zero on company books. These properties, bought for a combined $949 million in 2019, are currently around 45% vacant, signaling the ongoing struggles in the commercial real estate market, particularly in San Francisco. This situation is part of a broader trend where other properties in San Francisco are hitting the market at significant discounts.
Paramount could return two downtown San Francisco office buildings to lenders as maturity dates loom
Paramount Group Inc. is considering returning two of its downtown San Francisco office properties, Market Center and 111 Sutter St., to lenders as debt maturity dates approach. The company informed investors in February that these properties were in "workout mode" and might not remain in its portfolio. Paramount acquired these buildings in 2019, near the peak of San Francisco's pre-pandemic real estate market.
Rakuten Takes Full Floor at Paramount Group’s 300 Mission St.
Rakuten International is relocating its San Francisco offices to a full 29,000-square-foot floor at Paramount Group’s 300 Mission St. The move, a sublease from Glassdoor, allows Rakuten to consolidate its operations onto a single, amenitized floor, addressing issues with outdated layouts and fostering better collaboration among its technology workers.
Paramount CEO offered a $17M bonus if he can resurrect the stock
Paramount Group CEO Albert Behler has been offered a $17 million bonus if the company's stock price returns to its May 2022 level of $8.96 per share within 10 years, representing a 75% increase from its current $5.25. This incentive comes as Paramount faces challenges in the office real estate market, including a significant dividend cut and tenants leaving. The bonus plan aims to motivate executives and encourage retention amidst difficult market conditions.
Law firm Wilson Sonsini signs Midtown Manhattan lease
Law firm Wilson Sonsini has signed a new lease to occupy five floors at 31 W. 52nd St. in Midtown Manhattan. The firm will be moving into floors five through nine of the building, which is owned by The Paramount Group.
Paramount Group highrise sells first penthouse for $10.5M
Paramount Group has sold its first penthouse at the One Steuart Lane highrise in San Francisco for $10.5 million, or $4,487 per square foot, nearing the city's all-time condo record. This sale contributes to over $200 million in total sales for the development, the highest on the West Coast in the past 12 months. The remaining penthouses, divided into "estate homes", terrace homes, and shell penthouses, are expected to hit the market in early 2023.
Best Residential/Hospitality: One Steuart Lane
One Steuart Lane, a luxurious 120-residence tower on the San Francisco waterfront, has been awarded Best Project in the Residential/Hospitality category. The building achieved LEED Gold certification through sustainable design, including a unique glass facade, evacuated tube solar arrays for water heating, and a greywater system. Despite supply chain disruptions and a challenging urban location, the project team successfully managed construction and material sourcing.
Paramount Signs 142,000 SF Lease at 1301 Avenue of the Americas
Paramount Group, Inc. announced a significant 15-year, 142,000 square foot lease with O’Melveny & Myers LLP at its 1301 Avenue of the Americas property in Midtown Manhattan. This transaction de-risks Paramount's largest 2023 lease expiration and adds to over 450,000 square feet leased at the building in the past year. The lease is for floors currently occupied by Credit Agricole, which expires in February 2023.
Paramount Group rejects another takeover bid
Paramount Group has rejected a second takeover bid in two years, this time an all-cash offer from investor Monarch Alternative Capital for $12 per share, representing a 30% premium at the time. The real estate investment trust maintains that the offer significantly undervalues the company, despite Monarch's assertion that its high-quality portfolio is undervalued in public markets. Paramount's shares have struggled to return to pre-pandemic levels, though the company reported strong fourth-quarter leasing activity in its most recent earnings.
Paramount Group stock soars after Monarch Alternative Capital's buyout bid values REIT at $2.2 billion
Paramount Group (NYSE: PG) stock surged over 21% after confirming an "unsolicited" buyout bid from private-equity firm Monarch Alternative Capital LP. The offer of $12 a share in cash represents a 29.2% premium over the previous day's closing price and values the REIT at approximately $2.2 billion. Paramount Group announced it would carefully review the proposal to determine its best interests and those of its shareholders.
Paramount Refis Manhattan Landmark for $860M
Paramount Group Inc. has successfully refinanced its 1.7 million-square-foot Class A office building at 1301 Avenue of the Americas in Midtown Manhattan for $860 million. This five-year interest-only loan, with an initial weighted average interest rate of 2.96 percent, replaces an existing $850 million loan. The transaction is seen as a strong endorsement of the New York City office market despite recent declines in asking rents and high vacancy rates in Midtown.
Law firm Bracewell takes two floors at Midtown office tower, filling part of soon-to-be vacant space
Law firm Bracewell LLP has signed a lease for two floors at 31 W. 52nd St. in Midtown, a Paramount Group office tower. This new lease will backfill over 40% of an upcoming vacancy in the 29-story building. This move is a significant step in addressing soon-to-be vacant space within the tower.
Paramount Announces Executive Promotions
Paramount Group, Inc. announced the promotion of two executives to new and expanded roles. Wilbur Paes has been appointed Chief Operating Officer, Chief Financial Officer and Treasurer, and Peter Brindley has been appointed Executive Vice President, Head of Real Estate. These promotions are intended to strengthen the company's leadership and drive future growth.
TRD Insights: The rents at Paramount Group’s 1633 Broadway
Paramount Group's 1633 Broadway, a 2.5 million-square-foot tower and the largest asset in its portfolio, has proven to be a crucial source of cash for the company during the coronavirus pandemic. The article details a recent 10% stake sale and a $1.25 billion refinancing deal, revealing financial insights from CMBS loan documents. It also highlights the building's key tenants, rent collection figures, and the impact of the pandemic on retail and office tenants within the property.
Paramount Group prez’s $3M handshake deal goes awry
Paramount Group President Albert Behler is suing Kai-Shing Tao for $12 million over an oral agreement concerning an investment in Remark Holdings. Behler claims Tao is refusing to allow him to cash out on an investment that has quadrupled in value, despite an agreed-upon cashing out date. The lawsuit highlights the risks and complexities of handshake deals, even among longtime friends in the real estate world.
Paramount Group to Sell Stake in $2.4B NYC High-Rise
Paramount Group Inc. is selling a 10 percent interest in its 2.5 million-square-foot trophy office tower at 1633 Broadway in Midtown Manhattan. The deal values the 48-story skyscraper at $2.4 billion and is expected to close in the second quarter of 2020. This move aligns with Paramount's strategy to capitalize on asset improvements and focus its investments on New York and San Francisco.
Paramount Sells 10% Stake in 1633 Broadway
Paramount Group Inc. has sold a 10% joint venture interest in its 1633 Broadway office building in Midtown Manhattan for an undisclosed amount, valuing the property at $2.4 billion. This sale follows a $1.25-billion refinancing of the property in November and is expected to yield approximately $114 million in net proceeds for Paramount. The company's chairman and CEO, Albert Behler, stated that the transaction demonstrates the quality and desirability of their assets and their team's execution ability, even in the current market environment.
Paramount Group Gets $402M for Purchase of Market Center
Paramount Group has secured $402 million for the acquisition of the Market Center in San Francisco. This news highlights significant real estate activity in the San Francisco office market. The article also mentions other related stories concerning office market performance and transactions in the area.
Eastdil Secured arranges $1.25 billion refinance for Paramount Group
Paramount Group, Inc. has completed a $1.25 billion refinancing for its 1633 Broadway property, securing a new 10-year interest-only loan at a fixed rate of 2.99%. This refinancing allowed the company to repay an existing $1.05 billion loan, realize $179 million in net proceeds, and extend its debt maturity profile. Eastdil Secured, LLC arranged the financing for Paramount.
Paramount Group Closes $1.3B Manhattan Refi
Paramount Group has completed a nearly $1.3 billion refinancing of Paramount Plaza, a 48-story trophy office tower in Midtown Manhattan. The 10-year, interest-only loan has a fixed rate of 2.99 percent and allowed the company to repay an existing $1 billion loan, resulting in net proceeds of roughly $179 million. This refinancing improves Paramount Group's debt maturity profile and financial flexibility while keeping annual cash interest unchanged.
$722M Market Center deal will close by the end of the year
The Market Center, formerly known as Chevron Towers, is set to be sold for $722 million to Paramount Group by the end of the year. This purchase of the 753,000-square-foot complex marks one of the largest single sales in San Francisco's history.
Paramount Group’s 900 Third Ave. could go for over $400M
Paramount Group's 900 Third Avenue is being marketed for sale and could fetch over $400 million. The 36-story, 597,986-square-foot tower is about 80 percent occupied, presenting a "value-add" opportunity for buyers due to vacancies and under-market leases. Cushman & Wakefield's investment sales team has been hired to market the property.
Paramount Group Takes the Long View on the Office Market
Paramount Group, Inc. (NYSE: PGRE) maintains its focus on Class A office properties in New York, San Francisco, and Washington, D.C., emphasizing superior tenant service and a vertically-integrated platform. Despite achieving significant successes since its 2014 IPO, the company's share price performance has not met initial expectations, which Chairman, President, and CEO Albert Behler attributes partly to public investors' short-term focus. Paramount actively manages its portfolio through strategic capital allocation, including selling stabilized assets, share buybacks, and joint ventures, while also diversifying its tenant base and prioritizing sustainability.
Paramount Completes $227M Acquisition of Historic San Francisco Building
Paramount Group, Inc. acquired 111 Sutter Street, a historic 22-story office property in San Francisco, from JLL Income Property Trust for $227 million. A joint venture partner was brought in to acquire 51% of the equity interest, with Paramount managing the 70%-leased asset. Paramount expects to significantly increase net operating income by managing existing vacancy and upcoming lease expirations through 2021.
As Bendel exits, tony Fifth Avenue aims to fill vacancies
The closing of Henri Bendel's flagship store on Fifth Avenue, along with potential departures of other major retailers like Topshop and Tommy Hilfiger, has left significant retail vacancies. This article discusses the challenges and opportunities for filling these high-profile spaces. Despite concerns, real estate professionals express optimism that Fifth Avenue will find new tenants and maintain its status as a premier shopping destination.
2099 Pennsylvania to sell for $220M. Here's who will buy it.
Paramount is selling the property at 2099 Pennsylvania for $220 million, a significant increase from its purchase price six years prior. The sale will be for nearly $70 million more than Paramount originally paid, reflecting a substantial appreciation in value for the property.
Private equity firm exiting 9 West for Paramount’s 31 West 52nd Street
Providence Equity Partners is moving its office from Sheldon Solow’s 9 West 57th Street to Paramount Group's 31 West 52nd Street. The private equity firm signed an 11-year lease for 21,000 square feet at a significantly lower rent, following an earnings call from Paramount Group executives confirming a deal with a "prominent financial services firm." This move comes as 9 West 57th Street faces significant vacancy and has seen lowered asking rents.
One Steuart Lane Brings Luxury Living To San Francisco’s Waterfront
One Steuart Lane is a new 20-story condominium building in San Francisco developed by The John Buck Company, Paramount Group, Inc., and SRE Group Ltd. It offers 120 luxury waterfront residences with unparalleled views and amenities. The project is expected to be completed in early 2021 and targets the demand for upscale housing in the growing tech hub.
Law Firm to Take Four Floors at Paramount Group Office Tower
A law firm is set to occupy four floors at a Paramount Group office tower. The article, published in 2018, discusses this New York office leasing development. Further details about the law firm or the specific Paramount Group tower are not provided in the snippet.
