Paramount Group, Inc. said Wednesday that it sold a 25% interest in One Front St., 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. The buyer wasn’t disclosed. 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 New York City-based REIT retained net proceeds of $11.5 million from the sale, after transaction and other costs.
“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, CEO & 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.”
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