The third seeded Indo-German pair lost 4-6, 2-6 to Elgin and Istomin at the Olympic Tennis School here.
The winners of the event will get 125 ATP points and USD 7750 while the runners up got USD 4500 and 75 points.
Paes had won Biella event with Begemann and the Busan tournament with Sam Groth early in the season.
The veteran Indian is yet to win a title, an ATP World Tour this season. This is his third runners-up finishes after Winston-Salem and St Petersburg.
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