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1/14/26
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In San Francisco, Lone Star Funds has purchased the note secured by 600 California Street, a 359.9k sf, high-rise office asset situated in the city’s North Financial District.
The property was 26% leased at the time of sale and offers a mix of move-in ready vacancies ranging from 14k sf – 100k sf+ in size. Previous ownership invested significant capital upgrading the property, including elevator modernization, HVAC and Life Safety upgrades, as well preparing multiple suites to be market ready.
The North Financial District is situated above Market St and below Jackson Square. The area is known for its abundance of amenities and restaurants, including Starbucks, Sweet Green Chipotle, Gambino’s, Wayfare Tavern and Tadich.
Steven Golubchik, Edmund Najera, Darren Hollak and Brendan Raney with Newmark’s Western Region Capital Markets team represented the undisclosed seller in the transaction.
“The marketing process for 600 California yielded the deepest and most institutional bid pool San Francisco has seen in years,” said Golubchik. “The competitive marketing process proved that investors are ready to come back to San Francisco after spending the last few years on the sideline. Notably, we saw a number of New York-based firms who are entering the market for the first time viewing the current environment as the ideal entry point.”
San Francisco leasing demand has reached over 9 msf, above the pre-covid average, according to Newmark Research. There are 22 tenants in the market with requirements of over 100k sf, a significant increase from just nine months ago. The leasing market is booming with majority AI-related tenants as well as demand from finance, insurance, real estate and credit-rated tech companies re-entering the market for large blocks of space.
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