ING Capital Provides $402M Acquisition Loan for Market Center Office Complex in San Francisco
SAN FRANCISCO — ING Capital LLC, an American subsidiary of ING Groep N.V. (NYSE: ING), has provided a $402 million loan for the acquisition of Market Center, a 753,000-square-foot office complex in San Francisco.
Market Center is a two-building, Class A asset located in San Francisco’s Financial District. The 22-story building at 555 Market St. was completed in 1964 and the 40-story building at 575 Market St. was completed in 1975. The complex served as the headquarters of Chevron Corp. until 2001, when the energy giant relocated to San Ramon, Calif.
The borrower was a joint venture led by Paramount Group Inc. (NYSE: PGRE), a New York City-based development and investment firm that acquired an interest of about 67 percent in the property. The joint venture partners were not disclosed, but the total price of the sale was $722 million.
The acquisition loan was structured with a fixed interest rate and a five-year term with two one-year extension options. Paramount also used proceeds from the sale of Liberty Place, a 172,000-square-foot office building in Washington, D.C., to help pay for the acquisition of Market Center. Paramount’s $153.5 million sale of Liberty Place closed in late September.
The seller of the property, Blackstone, purchased Market Center in 2016. At that time, the property was leased to tenants such as Uber, TIBCO Software, PNC Bank and Bank of San Francisco.
The stock price of ING Groep N.V. opened at $12.06 per share on Monday, Dec. 16, relatively unchanged from a year ago. The stock price of Paramount Group opened at $13.62 per share, also essentially flat from a year ago.