US real estate investment trust Paramount Group has invested close to $900m (€810m) in two San Francisco office assets.
The New York City-headquartered investor said it is buying the two-building Market Center for $722m and has acquired a 44% joint venture interest in the $402m 55 Second Street asset.
Blackstone Real Estate Partners, which put the 753,000sqft Market Center up for sale earlier this year, paid $510m for the asset in June 2016, according to public records.
Paramount Group said it plans to bring in a joint venture partner prior to the closing of the Market Center acquisition, which is expected in the next quarter of the year.
Paramount Group said as part of the 55 Second Street acquisition, an existing $137.5m mortgage loan will remain in place and be increased by an additional $50m.
Albert Behler, chairman, CEO and president of Paramount Group, said: “We continue to opportunistically redeploy capital in one of the most desirable markets in the country at an attractive basis.
“We plan to aggressively manage future rollover at the property, where in-place rents sit well below market in a city with very limited new office supply and strong tenant demand for large-block availabilities.”
