Rithm to acquire Paramount Group in $1.6B deal

"Asset manager Rithm Capital Corp., the parent company of multichannel lender Newrez, has agreed to pay $1.6 billion to acquire Paramount Group and develop a presence in the office market, the companies announced Wednesday. Real estate investment trust (REIT) Paramount specializes in office properties in New York and San Francisco, with 13 owned and four managed assets totaling more than 13.1 million square feet. As of June 30, 85.4% of the portfolio was leased."

"Michael Nierenberg, CEO of Rithm, called the acquisition a generational opportunity, describing it as a springboard to grow the company's commercial real estate and asset management platforms while expanding its role as an owner-operator. 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, Nierenberg added in a statement."

Rithm Capital Corp. agreed to acquire Paramount Group for $1.6 billion, acquiring 13 owned and four managed office properties totaling 13.1 million square feet in New York and San Francisco. As of June 30 the portfolio was 85.4% leased. Rithm offered $6.60 per fully diluted Paramount share funded with cash, liquidity and potential co-investor opportunities. Paramount stock traded down 11.52% at $6.53 following the announcement. The boards of both companies approved the transaction, which is expected to close in late Q4 2025 pending stockholder approval and customary closing conditions. Rithm described the acquisition as a generational opportunity and springboard to expand its commercial real estate and asset management platforms.

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