Rithm Capital Corp. has announced its agreement to acquire Paramount Group, Inc. for a total cash consideration of approximately $1.6 billion. The acquisition will provide Rithm with a portfolio of 13 owned and 4 managed high-quality office assets, totaling more than 13.1 million square feet. As of June 30, 2025, 85.4% of these assets are currently leased.
Under the terms of the agreement, Rithm will acquire all of the outstanding shares of Paramount common stock for $6.60 per fully diluted share. The transaction is expected to close in late Q4 2025, subject to customary closing conditions and the approval of Paramount's common stockholders.
The acquisition is expected to expand and diversify Rithm’s commercial real estate footprint and asset management capabilities. Rithm intends to fund the transaction with a combination of cash and liquidity from its balance sheet and potential opportunities from co-investors.
According to Michael Nierenberg, Chief Executive Officer of Rithm, the acquisition of Paramount is considered a generational opportunity that will serve as a springboard to build out Rithm’s commercial real estate and asset management platform.
Paramount's lead independent director, Martin Bussmann, expressed strong belief in the intrinsic value of Paramount's high-quality portfolio and stated that the acquisition by Rithm offers the financial scale needed to improve its fundamental operating performance.
Rithm Capital’s management will host a conference call today, September 17, 2025, at 8:30 a.m. Eastern Time to discuss the transaction.
The transaction advisors include UBS Investment Bank and Citigroup Global Markets Inc. as financial advisors to Rithm, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to Rithm.
Rithm Capital Corp. is described as a global alternative asset manager with significant experience managing credit and real estate assets, while Paramount Group, Inc. is a fully integrated real estate investment trust that owns, operates, manages, acquires, and redevelops high-quality, class A office properties located in select central business district submarkets of New York City and San Francisco.
The proposed transaction is expected to be submitted to the stockholders of Paramount for their consideration and approval at a special meeting. Paramount will file with the Securities and Exchange Commission a proxy statement on Schedule 14A in connection with the proposed transaction.
Participants are encouraged to read the proxy statement and any other relevant documents in connection with the proposed transaction that Paramount files with the SEC when they become available, as they will contain important information about the proposed transaction. Today the company's shares have moved -11.43% to a price of $6.545. For the full picture, make sure to review Paramount's 8-K report.
