SF Office Towers Land $975M Refi
The buildings are part of One Market Plaza, a 1.6 million-square-foot Class A office-and-retail development in the South Financial District.
By Keith Loria, Contributing Editor
San Francisco—Paramount Group, Inc., has completed a $975 million refinancing of One Market Plaza, a 1.6-million-square-foot Class A office and retail development, located in the South Financial District of San Francisco.
Eastdil Secured LLC arranged the financing for the property, with a loan provided by Goldman Sachs Mortgage Co., Morgan Stanley Bank N.A., Deutsche Bank AG, New York Branch and Barclays Bank PLC. The new seven-year interest-only loan matures in January 2024 and has a fixed rate of 4.03 percent.
“We took advantage of a robust credit market environment to further strengthen our balance sheet,” Wilbur Paes, Paramount’s executive vice president, chief financial officer & treasurer, said in a prepared release. “This refinancing allows us to lock in an attractive rate, extend maturities, and is another testament to the markets’ confidence in our Class A portfolio.”
The property consists of two landmark office towers, which offer spectacular bay and city vistas and breathtaking views of both the San Francisco Bay and Market Street.
On-site amenities include more than 42,000 square feet of retail space that features two first-class restaurants, a gourmet coffee shop, a full-service bank, a food court, a hair salon and other services.
The Embarcadero, Justin Herman Plaza and the Ferry Building are within walking distance of the property, and the location offers access to the Bay Bridge, Interstates 80 and 280 and Highway 101.
The net proceeds from the refinancing were used to repay the existing $873 million loan that bears interest at 6.12 percent that was scheduled to mature in December 2019, with the remaining $23 million earmarked to further advance Paramount’s strategy.