Rithm Capital Corp. (RITM) entered a merger agreement on September 17, 2025, to acquire Paramount Group, Inc. (PGRE) at a valuation of $4.58 billion.
Rithm will acquire Paramount for a total cash consideration of approximately $1.6 billion.
Rithm will acquire all of the outstanding shares of Paramount common stock for $6.6 per fully diluted share, representing a discount of 10.69% from the stock’s last close.
Paramount Group is a New York-based real estate investment trust that owns and manages Class A office properties in prime business districts of New York City and San Francisco. Paramount’s portfolio includes 13 owned and 4 managed high-quality office assets, totaling more than 13.1 million square feet, 85.4% of which is currently leased.
Rithm Capital is a New York-based alternative asset manager and real estate investment trust that invests in and manages credit, real estate, and financial services businesses through platforms spanning lending, mortgage servicing, and structured finance.
In May, Paramount announced that its Board had initiated a review and evaluation of strategic alternatives to maximize shareholder value. The stock was trading at $4.78 before the company engaged BofA Securities as financial advisor and Latham & Watkins as legal counsel to evaluate these alternatives.
The Wall Street Journal reported yesterday that Rithm was nearing a deal to buy Paramount. The sale process drew interest from a host of prominent real estate owners, including investment firm Blackstone (BX) and office owners SL Green Realty (SLG) and Vornado Realty Trust (VNO). The leading bid was from Rithm Capital.
Rithm expects to fund the transaction through a combination of cash on hand, liquidity from its balance sheet, and potential contributions from co-investors.
The deal is expected to close in late Q4 2025.
Paramount got financial advice from BofA Securities and legal advice from Latham & Watkins. Rithm was advised financially by UBS Investment Bank and Citigroup Global Markets, and legally by Skadden, Arps, Slate, Meagher & Flom.
The deal sees Rithm Capital paying 9.07 times the funds from operations for Paramount.
For a more comprehensive understanding of this merger, please head over to the Deal Metrics page here:
Deal Metrics for the acquisition of Paramount Group, Inc. (PGRE) by Rithm Capital Corp. (RITM)
The Deal Metrics page for each merger or acquisition includes:
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Editor’s Note: Baranjot Kaur contributed to this article