Rithm Capital Corp. has entered into a definitive agreement to acquire Paramount Group for $1.6 billion.

Paramount’s portfolio includes 13 owned and four managed high-quality office assets, totaling more than 13.1 million square feet, 85.4 percent leased as of June 30.

“We believe the acquisition of Paramount is a generational opportunity that will serve as a springboard to build out our commercial real estate and asset management platform and expands our owner-operator model,” says Michael Nierenberg, CEO of Rithm. “The Paramount portfolio is situated in cities where we have a strong conviction in the recovery of office market fundamentals, including improving rent rolls, a more favorable interest rate environment, and increasing demand. We believe Rithm’s asset management business is well positioned to create value in the commercial real estate market, with a growing footprint of high-quality office assets and the expert urban development and complimentary