NEW YORK--(BUSINESS WIRE)--Paramount Group, Inc., (the “Company,”) New York’s largest privately held real estate investment and management firm, today announced it acquired 50 Beale Street, a Class A office building located in San Francisco, California’s South Financial District. The purchase was made by affiliates of the Company and represents Paramount’s second acquisition in the San Francisco market. The seller was a joint venture of Mitsubishi Estate New York and Rockefeller Group U.S. Premier Office Fund LP.
“This building, which is located in one of the most desirable neighborhoods in the heart of San Francisco undergoing immense redevelopment, is the type of iconic asset where we believe we can utilize our operational expertise to attract and retain a premium tenant base and enhance cash flow over time,” said Albert Behler, President and CEO of Paramount Group.
50 Beale was designed by Skidmore, Owings & Merrill and developed in 1968 by Bechtel Corporation, which still retains its headquarters in the building, and is located in one of the most attractive locations for professional services, financial services and technology tenants. The 23-story, building consists of approximately 662,060 rentable square feet of office space, of which 90 percent is currently occupied, and offers 90 valet parking spaces. The building has undergone extensive renovations as recently as 2012 and was recently certified LEED Gold by the U.S. Green Building Council.
This office building is ideally located only one block away from the Transbay Transit Center, a $4.5 billion development of the “Grand Central Station of the West.” This 40-acre modern regional transportation hub will connect eight Bay area counties and the State of California through eleven transit systems with the initial phase expected to be complete in late 2017. The Company is evaluating a retail development plan, which could offer additional opportunities in the next three to five years.
Paramount Group, Inc. was represented by Willkie Farr & Gallagher LLP on the acquisition.
About Paramount Group, Inc.
Headquartered in New York City, Paramount Group is a vertically-integrated real estate company that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in premier submarkets within midtown Manhattan, Washington, D.C. and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.