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**Rithm Capital to Acquire Paramount Group in $1.6 Billion Deal**
Rithm Capital Corp., a global alternative asset manager, has announced a definitive agreement to acquire Paramount Group, Inc. in a transaction valued at approximately $1.6 billion. Paramount is a vertically-integrated REIT with a portfolio of Class A office properties located primarily in New York City and San Francisco.
The transaction includes 13 owned and four managed office properties totaling over 13.1 million square feet, 85.4% of which is leased as of June 30. The deal has been unanimously approved by the Boards of Directors of both companies.
Under the agreement, Rithm will acquire all outstanding shares of Paramount common stock at a rate of $6.60 per fully diluted share. The acquisition is set to expand Rithm’s real estate platform and strengthen its asset management operations.
“We believe the acquisition of Paramount is a generational opportunity that will serve as a springboard to build out our commercial real estate and asset management platform and expand our owner-operator model,” said Michael Nierenberg, CEO of Rithm Capital. “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, “We believe Rithm’s asset management business is well-positioned to create value in the commercial real estate market, with a growing footprint of high-quality office assets and the expert urban development and complimentary office management capabilities of our GreenBarn team and broader platform.”
Paramount had previously announced it was exploring strategic options, including a potential sale. The acquisition is expected to close by the end of the fourth quarter of 2025.
*Pictured: Paramount’s 1301 Avenue of the Americas in Midtown Manhattan.*
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