Paramount Sale Draws Bids From SL Green and Vornado

The Big Picture

According to The Real Deal, Paramount Group is moving forward with its strategic review and possible sale. The company has now entered the second round of bidding. Major institutional investors are interested, including SL Green, Vornado, and Empire State Realty Trust. Blackstone, Rithm Capital, and DivcoWest—partnering with Dubai-based Saray Capital—are also submitting bids.

These groups are drawn to Paramount’s large portfolio and presence in core markets. But they’re also stepping in while the company faces serious governance questions.

What’s at Stake

Paramount owns 13M SF of office space, mostly in New York and San Francisco. Key properties include 1301 Avenue of the Americas and 31 West 52nd Street. As of the second quarter, the New York portfolio was 88% leased.

Most bidders already have large office footprints in New York. They’re well positioned to take on Paramount’s holdings, despite the tough office market.

Under the Microscope

CEO Albert Behler is under fire for personal financial dealings. The company revealed over $4M in undisclosed payments tied to his interests. These include:

• $400,000 to firms linked to his wife
• $900,000 for personal accounting services
• A no-bid contract to a security firm run by an ex-girlfriend

The Real Deal also found that Behler kept a personal relationship with the firm’s owner, who is 30 years younger and his former partner. He directed staff to use the firm at 60 Wall Street, where Paramount owns a 5% stake.

In July, Paramount confirmed the SEC is investigating conflict-of-interest and executive pay disclosures. The company says it is cooperating.

The Financial Side

Paramount recently refinanced 1301 Avenue of the Americas. The $900M deal replaced a loan set to mature in 2026. This move strengthens the balance sheet and may improve the appeal of the property to buyers.

Saray Capital, which bought a 5% stake in May, is now backing a joint bid through DivcoWest. That suggests a shift from passive investor to active participant.

Looking Ahead

Paramount’s board previously rejected two takeover bids. One came from Monarch Alternative Capital in 2022, offering $12 per share—nearly double today’s stock price of $6.70. The pressure to sell is growing.

The SEC probe and governance concerns are pushing the board to act. A deal could emerge from this round of bidding, especially if buyers believe they can unlock value.

Why It Matters

Big REITs are still betting on New York offices, even as the market evolves. The Paramount sale shows how asset quality can attract capital—but also how leadership issues can complicate deals. The outcome could shape investor confidence in public office landlords moving forward.