Paramount to Acquire One Front Street in San Francisco for $521M
SAN FRANCISCO — Paramount Group Inc. (NYSE: PGRE) has agreed to acquire One Front Street, a Class A office building located in the Market Street corridor of San Francisco, for $521 million.
The 38-story, LEED Gold certified property is located in the heart of San Francisco’s central business district, within two blocks of the $6 billion Transbay Transit Center development set to open in 2017. The Transbay center will act as a regional transportation hub, accommodating up to 45 million passengers per year.
The property consists of 651,000 square feet of office space and a 290-space parking garage. The building was 99 percent occupied at the time of sale by tenants including Lookout Inc., Kite, Wells Fargo Bank, Covington & Burling LLP, Skidmore Owings & Merrill LLP, FTI Consulting, Jones Lang LaSalle (JLL) and BNP Paribas.
Market Front Associates LP sold the property, according to reports by the San Francisco Business Times. JLL manages and handles leasing for the office space.
Paramount is considering various strategic options including bringing in a joint venture partner for the property or selling an asset within its current portfolio to help fund the transaction. The deal is expected to close before the end of the year.
New York City-based Paramount Group is a real estate trust that owns, operates, manages, acquires and redevelops Class A office properties located in the central business districts of New York City, Washington, D.C., and San Francisco.
The company’s stock price closed on Monday, Sept. 12 at $17.60 per share, up from $16.26 one year ago.
— Katie Sloan