By Jon Peterson
New York City-based Paramount Group is planning to close later this year on the acquisition of the two-building office asset in San Francisco known as Market Center. The planned purchase price is projected to be approximately $723 million, or roughly $960 per square foot based on that figure, according to sources familiar with the sale of the asset.
Representatives of Paramount did not respond to a phone call. Should the pricing on this sale hold, it would come in below the projected price of $1,000 per square foot or $753 million when the property was put up for sale earlier this year.
Blackstone Real Estate Partners is the current owner of the asset. It declined to comment when contacted for this story, as well. The real estate investor’s listing agent on the sale is the San Francisco office of Eastdil Secured.
The seller has been the owner for a little more than three years. It had paid $510 million for the property in June 2016, as stated in public records. Blackstone had held the property through its office building operating platform with EQ Office, formerly known as Equity Office.
Market Center is a 753,000 square foot office complex. It is located at 555 and 575 Market Street. One of the main tenants in the property is Uber. The asset also offers a mixture of amenities. These include bicycle parking, locker rooms and showers for employees who are interested in riding a bicycle to work. The location of the buildings does give workers access to public transportation nearby, as well. The property is closest to the Montgomery Street BART station and Muni.