"Rithm Capital is nearing the finish line to acquire New York City and San Francisco office landlord Paramount Group, according to sources familiar with the matter. This comes after a months-long multiple-round bidding process, which included SL Green, Vornado, Blackstone, Empire State Realty and DivcoWest with Dubai-based Saray Capital, sources said. Through the acquisition, Rithm, one of the largest mortgage servicers in the U.S., can expand deeper into commercial real estate amid an acquisition spree."
"Paramount revealed earlier this year that it made millions of dollars in previously undisclosed payments to Behler's personal expenses and outside companies over the past three years. This included $900,000 on Behler's personal accounting services and $3 million on a private jet firm, co-owned by Behler. A short time later, an analyst at Green Street Advisors called for the removal of certain Paramount board members, citing management's high compensation relative to its stock performance."
Rithm Capital is close to acquiring Paramount Group, which owns a 17-building, 13 million-square-foot office portfolio in New York City and San Francisco. Multiple bidders competed in a months-long process, including SL Green, Vornado, Blackstone, Empire State Realty, DivcoWest and Dubai-based Saray Capital. Paramount hired Bank of America in May to explore strategic alternatives amid increasing scrutiny of its CEO and board. Paramount disclosed millions in previously undisclosed payments linked to CEO Behler and firms he co-owns, prompting calls for board removals. Paramount also reported an SEC investigation and faced reports of a pushed no-bid contract.
Read at therealdeal.com
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