KanAm Grund Group Acquires Paris CBD Office Property at 3 Rue des Saussaies for Value-Add Repositioning
KanAm Grund Group has acquired a roughly 2,200-square-meter office property at 3 Rue des Saussaies in the 8th arrondissement of Paris on behalf of a German institutional investor, the firm announced Sept. 10. The acquisition, situated in the heart of the Paris Central Business District, is slated for a comprehensive value-add repositioning designed to bring the Haussmann-era building to contemporary Grade A and ESG standards.
Prime Paris CBD Location
The property sits between Rue du Faubourg Saint-Honoré, Avenue de Marigny, and Boulevard Haussmann — one of the most sought-after office micro-locations in the French capital. The Paris CBD has maintained a vacancy rate of approximately 4 to 6 percent in recent periods, well below the Greater Paris Region's rate of roughly 10 to 11 percent, reflecting the persistent scarcity of high-quality, ESG-compliant space in central Paris. Grade A CBD availability is particularly constrained, with some market estimates placing that segment's vacancy at around 1 percent. Prime CBD rents have held above €1,200 per square meter per year, and prime yields have stabilized in the range of 4.0 to 4.25 percent.
KanAm Grund Group cited limited supply, strong occupier demand, and increasingly stringent ESG requirements as the conditions underpinning the acquisition's investment rationale.
Property Details and Repositioning Program
The building at 3 Rue des Saussaies offers approximately 2,200 square meters of lettable space across six above-ground floors and four underground floors. The property also includes 31 parking spaces across three basement garage levels and approximately 230 square meters of garden and terrace areas spread over four levels. Originally dating from the Haussmann era, the building underwent a comprehensive reconstruction in 1992 and now features a reinforced concrete structure behind a traditional Parisian façade.
KanAm Grund Group plans to transform the asset into a boutique corporate headquarters targeting occupiers seeking independent, high-image office space in the Paris CBD. The repositioning program calls for the complete renewal of all technical systems, including heating, air conditioning, ventilation, electrical, and plumbing installations. The interior concept envisions flexible, experience-oriented workspaces alongside a concierge reception area with a coffee bar, dining and catering facilities, bicycle storage, a flexible modular space on the first basement level, and meeting rooms in multiple formats.
The redevelopment targets BREEAM Excellent certification and a material improvement in the building's energy efficiency, positioning it as a next-generation Grade A office asset.
Executives Cite Resilient Market and Long-Term Strategy
Malo Carof, Director and Head of Investment Management France & Benelux at KanAm Grund Group, said the Paris CBD office market is demonstrating resilience. "With this repositioning, we are creating a building that meets the expectations of today's most demanding occupiers, while ensuring sustainable value creation for our investors," Carof said.
Anthony G. Bull-Diamond, Managing Director and Head of Investment and Asset Management Europe, described the deal as representative of the firm's current investment focus. "We are targeting central locations in key European office markets, where we unlock long-term and stable value appreciation potential for our investors through value-add strategies, active asset management, sustainability, and high-quality design," Bull-Diamond said.
Building on a Paris Repositioning Track Record
KanAm Grund Group pointed to its recently completed repositioning of 35 Marbeuf — a Haussmann-style building in Paris's Golden Triangle originally constructed in 1880 and acquired on behalf of a northern German pension fund — as the benchmark for the Saussaies project. The firm said 35 Marbeuf achieved full occupancy with a single tenant following its repositioning, demonstrating demand for high-specification boutique headquarters in core CBD micro-locations.
Additional prior projects cited by the firm include the modernization of Opéra Italiens in the Paris CBD and the revitalization of the high-rise buildings Tour Europe and Tour Egée in La Défense, each of which the firm said resulted in substantial value creation and long-term leases.
The acquisition of 3 Rue des Saussaies adds to KanAm Grund Group's Paris portfolio and extends the firm's stated strategy of deploying institutional capital into sustainable, high-performance office properties in major European gateway cities.
