Manus's questions to Paramount Group Inc (PGRE) leadership • Q4 2024
Question
Manus, on behalf of Steve, asked for the reasons behind a significant lease deal that fell through at the last minute and requested an update on the status of two non-core assets, 111 Sutter Street and Market Center.
Answer
Peter Brindley, EVP, Head of Real Estate, described the pulled lease as highly unusual and stated the ultimate reason was unknown, but noted that new prospective tenants are already interested in the space at a higher rent. Albert Behler, Chairman, CEO, and President, confirmed the new leasing discussions involve significantly higher rents. Wilbur Paes, COO, CFO, and Treasurer, updated on the non-core assets, explaining that 111 Sutter has a loan extension through late 2025 with no risk to Paramount's balance sheet. He added that Market Center is currently being marketed for sale, with a resolution expected as early as Q2 2025.