Global alternative asset manager Rithm Capital Corp. said Wednesday it has agreed to acquire Paramount Group, Inc., a vertically-integrated REIT that owns, operates, manages, and redevelops Class A office properties in New York City and San Francisco, for approximately $1.6 billion. Paramount’s portfolio includes 13 owned and four managed office assets totaling more than 13.1 million square feet, 85.4% of which is currently leased as of June 30.
Under the terms of the agreement, which has been approved by the Boards of Directors of both companies, Rithm will acquire all of the outstanding shares of Paramount common stock for $6.60 per fully diluted share. The addition of the Paramount portfolio will create new opportunities for investors to access Rithm’s real estate platform and bolster its asset management business.
“We believe the acquisition of Paramount is a generational opportunity that will serve as a springboard to build out our commercial real estate and asset management platform and expands our owner-operator model,” said Michael Nierenberg, CEO of Rithm. “The Paramount portfolio is situated in cities where we have a strong conviction in the recovery of office market fundamentals, including improving rent rolls, a more favorable interest rate environment, and increasing demand.”
He continued, “We believe Rithm’s asset management business is well-positioned to create value in the commercial real estate market, with a growing footprint of high-quality office assets and the expert urban development and complimentary office management capabilities of our GreenBarn team and broader platform.”
The REIT recently announced it was exploring strategic options, including a possible sale. The deal with Rithm is expected to by the end of the fourth quarter of 2025.
Pictured: Paramount’s 1301 Ave. of the Americas in Midtown Manhattan.
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