US real estate investor Beacon Capital Partners has acquired a 25% stake in One Front Street, a $255m San Francisco office building owned by Paramount Group.
According to people familiar with the matter, Beacon Capital, via the Beacon Capital Strategic Partners 9 US value-add office fund, acquired the quarter share in the 649,009sqft building for $63.75m.
The deal with Beacon Capital values the One Front Street office assets considerably lower than the $521m Paramount paid in December 2016.
The deal involved the seller providing Beacon Capital with $40.5m in seller financing through a two-year loan at a fixed interest rate of 5.5%.
According to Paramount’s first quarter 2025 earnings report, the current occupancy of One Front Street is 69.9%.
The property is expected to undergo a comprehensive repositioning plan.
Beacon Capital did not respond to a request for comment.
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