{"id":5122,"date":"2025-09-23T05:15:56","date_gmt":"2025-09-23T05:15:56","guid":{"rendered":"https:\/\/www.commercialsearch.com\/blog\/?p=5122"},"modified":"2025-09-23T05:15:56","modified_gmt":"2025-09-23T05:15:56","slug":"rithm-capital-to-acquire-paramount-group","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/blog\/rithm-capital-to-acquire-paramount-group\/","title":{"rendered":"Rithm Capital to Acquire Paramount Group in $1.6 Billion Class A Office Deal"},"content":{"rendered":"

Rithm Capital, traditionally focused on mortgage lending and credit investments, recently announced that it would acquire Paramount Group, a REIT with 13 owned and four managed Class A office properties totaling 13.1 million square feet across Manhattan<\/a> and San Francisco.<\/a><\/p>\n

The portfolio, currently 85.4% occupied, is valued at roughly $1.6 billion, representing a 40% discount to pre-pandemic valuations. Rithm described the acquisition as a \u201cgenerational opportunity\u201d to expand its real estate and asset management platform. Reuters reports that the transaction is expected to close by the end of Q4 2025, pending shareholder approval.<\/p>\n

Paramount\u2019s decision to sell follows months of internal review and governance scrutiny, including SEC attention regarding potential conflicts of interest and executive compensation practices. While no formal findings have been issued, these issues \u2014 coupled with executive departures \u2014 contributed to the company\u2019s decision to explore a sale.<\/p>\n

Rithm executives have framed the acquisition as a move aligned with the recovery of urban office markets, particularly in gateway cities at an inflection point.<\/p>\n

\u201cThe 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”, said Michael Nierenberg, Chief Executive Officer, in a statement on the Rithm website.<\/p><\/blockquote>\n

To that end, Yardi Research data from July indicates that more than two-thirds of Class A office properties in San Francisco and Manhattan have traded at a discount since 2023, highlighting the opportunity to acquire high-quality assets at reduced valuations. Furthermore, limited new construction (1.77 million square feet in San Francisco and 2.57 million in Manhattan) supports the potential for appreciation as demand rebounds, including activity from the tech and AI sectors.<\/p>\n

The acquisition also opens the door to wider consolidation: Rithm emphasized the long-term perspective, noting that New York and San Francisco remained core urban hubs where office fundamentals were improving and demand was rising. Executives also indicated that additional deals could materialize in the next six to 12 months as the firm continues to expand its presence in key urban markets.<\/p>\n","protected":false},"excerpt":{"rendered":"

Rithm Capital, traditionally focused on mortgage lending and credit investments, recently announced that it would acquire Paramount Group, a REIT with 13 owned and four managed Class A office properties totaling 13.1 million square feet across Manhattan and San Francisco. The portfolio, currently 85.4% occupied, is valued at roughly $1.6 billion, representing a 40% discount to pre-pandemic valuations. Rithm described the acquisition as a \u201cgenerational opportunity\u201d to expand its real estate and asset management platform. Reuters reports that the transaction is expected to close by the end of Q4 2025, pending shareholder approval. Paramount\u2019s decision to sell follows months of…<\/p>\n","protected":false},"author":3163,"featured_media":3684,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-5122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-office-news"],"acf":[],"yoast_head":"\nRithm Acquires Class A Office Portfolio from Paramount Group for $1.6B<\/title>\n<meta name=\"description\" content=\"Rithm's acquisition of Paramount Group will provide global asset manager with a Class A office portfolio in premier markets such as Manhattan and San Francisco\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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