Paramount Group Attracts Definitive Agreement to Sell for $1.6B
New York-based global alternative asset manager Rithm Capital Corp. reportedly announced that it has entered into a “definitive agreement to acquire Paramount Group, Inc. The pending acquisition of the “vertically-integrated real estate investment trust that owns, operates, manages, and redevelops Class A office properties in New York and San Francisco,” will provide Rithm with a portfolio of “13 owned and 4 managed high quality office assets, totaling more than 13.1 million square feet, 85.4% of which is currently leased as of June 30, 2025” according the Business Wire’s press release. The agreement which as been approved by the Boards of Directors of both companies will see Rithm “acquire all of the outstanding shares of Paramount common stock for $6.60 per fully diluted share,” resulting in “a total cash consideration to Paramount shareholders of approximately $1.6 billion” upon the expected closure of the transaction in late 4th quarter 2025, “subject to customary closing conditions, including the approval of Paramount’s common stockholders.” As part of Rithm’s announcement of the agreement, the firm’s Chief Executive Officer Michael Nierenberg reportedly stated, “The 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.”