The longtime CEO and chairman of Paramount was brought to his old office at 1633 Broadway on Friday morning, despite no longer working at the company, according to sources familiar with the matter.
Behler was visibly upset when he was forced to leave the building, sources said.
The bizarre story unfolded on Rithm Capital’s first day as owner of Paramount Group, a major office rental company in New York and San Francisco. (After publication, a source close to Behler disputed this story, claiming the CEO thought Friday would be his last day in the office.)
Rithm announced plans in September to acquire the REIT for $1.6 billion. In a news release posted Friday morning, the company said Behler would no longer continue under new ownership. Behler, 73, was seen packing up some of his belongings in recent days, sources said.
But Behler seemed unable to change his routine.
Although his official last day was Thursday, Behler showed up at the office the next day, in a scene reminiscent of a famous Seinfeld episode in which George Costanza quit his job, only to return to work the next day as if nothing had happened.
(After publication, the source close to Behler claimed that he had not been informed that Thursday would be the last day, or that he had been told not to come to the office. However, Behler had sent a farewell letter to his colleagues on Thursday, acknowledging that the deal would close on Friday.)
It is unclear what time Behler showed up at the building and entered his office, but around 10:30 a.m. Behler was told to leave and was escorted from 1633 Broadway. He was met by two security guards in the building’s lobby and walked to his car, sources said. Afterwards, security personnel were informed that Behler would no longer have access to Paramount buildings, according to sources.
A spokesperson for Paramount Group did not return a request for comment. Rithm Capital declined to comment.
In a press release announcing the closing of the deal today, Rithm announced that Behler is “leaving the company” but provided no additional details.
The strange ordeal caps a tumultuous year for Behler, who led the company for more than 30 years. First, Paramount revealed that it had made millions of dollars in payments to Behler’s outside companies or personal interests. The charges included: $3 million to a private jet company in which Behler had a 50 percent stake and $900,000 for Behler’s personal accounting services. The payments were previously undisclosed.
Then, Paramount revealed this summer that it was under a Securities and Exchange Commission investigation related to the disclosures about related-party transactions, conflicts of interest and other issues.
Shortly afterwards, The real deal discovered that Behler had personally entered into a no-bid contract with his ex-girlfriend’s security company.
Behler’s days at Paramount appeared to be numbered when Paramount reached an agreement earlier this year to sell the company to Rithm for $1.6 billion, or $6.60 per share, after an intensive, multi-round bidding process.
Dubai-based Saray Capital, which owned a 5.4 percent stake in Paramount, tried to make a last-minute offer of $6.95 per share. But shareholders ultimately approved Rithm’s offer this week.
However, shareholders rejected a proposal to pay for Behler’s $34 million golden parachute, Crain’s reported. The shareholder vote is non-binding, meaning Behler could still get an impressive compensation package.
In Behler’s letter to employees, he expressed his appreciation for their hard work.
“Thank you for your trust, support and all the laughs along the way,” he wrote.
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