Rithm Capital, a global alternative asset manager, has announced an agreement to acquire Paramount Group, a real estate investment trust that owns, operates, manages, and redevelops Class A office properties in New York City and San Francisco. The transaction values Paramount at approximately $1.6 billion in cash for its shareholders.
Paramount’s portfolio includes 13 owned and 4 managed high-quality office buildings, totaling more than 13.1 million square feet. As of June 30, 2025, 85.4 percent of this space was leased. These properties are located in two of the most competitive office markets in the United States, giving Rithm a strong foothold in prime urban locations.
Under the terms of the agreement, which the boards have approved for both companies, Rithm will purchase all outstanding shares of Paramount common stock for $6.60 per fully diluted share. The acquisition will be funded through a mix of cash from Rithm’s balance sheet and potential contributions from co-investors. Adding Paramount’s portfolio is expected to expand Rithm’s real estate platform and strengthen its asset management business, creating new opportunities for investors.
The deal is expected to close in the fourth quarter of 2025, pending customary closing conditions, including approval from Paramount’s common stockholders. If completed, the acquisition will mark a significant expansion of Rithm’s presence in the commercial real estate sector while providing liquidity and value to Paramount’s investors.
Advisors: UBS Investment Bank and Citigroup are acting as financial advisors to Rithm, and Skadden, Arps, Slate, Meagher & Flom is serving as legal counsel to Rithm. Newmark Group and Eastdil Secured are acting as real estate advisors to Rithm. BofA Securities is acting as exclusive financial advisor to Paramount and a Transaction Committee of the Board, comprised of independent directors, and rendered an opinion that the transaction is fair to Paramount shareholders from a financial perspective. Latham & Watkins is acting as legal counsel to Paramount.
KEY QUOTES:
“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 expands our owner-operator model. 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. 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 complementary office management capabilities of our GreenBarn team and broader platform.”
Michael Nierenberg, Chief Executive Officer of Rithm
“We are incredibly proud of the high-quality portfolio we’ve built and believe strongly in its intrinsic value. Together, the Board and management team have found an ideal partner in Rithm, which offers the financial scale needed to improve our fundamental operating performance. After an extensive process and evaluation of a range of strategic alternatives, we are pleased to have reached this agreement which will deliver immediate, full and fair value to our shareholders.”
Martin Bussmann, Lead Independent Director of Paramount
