$47.5 Million Non-Performing San Francisco Office Loan

Attributes

Occupancy

33.5%

WALT

1.8 years

Number of floors

Building area net

13,772 m²

Unpaid principal balance

PLN 172,866,228

Balance PSF

$320

Call for offers

24/09/2025

Description

Jones Lang LaSalle (“JLL”) has been retained on an exclusive basis by the Seller, a CMBS Special Servicer, to arrange the sale of a $47.5 million non-performing first mortgage loan (the “Loan”). The Loan is secured by a leasehold interest in a Class-A office building located in San Francisco, California (the “Property”). The Loan was originated in August 2019 to facilitate the acquisition of the Property. In August 2023, the Loan became non-performing via a monetary default. As of August 2025, the Loan has an unpaid principal balance of $47,500,000 ($320 PSF).

The Property comprises 148,243 SF, standing 11 stories above the Financial District of San Fransico and was 33.5% leased with 1.8 years of WALT, as of August 2025. The building boasts large windows - capturing significant natural light, 20,000 SF of ground floor amenity retail, and suburb transportation - located steps away from a BART station.

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Investment Highlights

Flight to Quality

The Property showcases a lively office environment, with creative potential. Features include a brick exterior, massive windows, valet parking, a secured bike room, and proximity to Union Square, hundreds of restaurants, storefronts, and hotels. Hovering close to 30.0% occupancy (as of August 2025), the remaining space is well positioned for investors to significantly boost cash flow through continued leasing.

Powerful Submarket Momentum

Q1 2025 posted the strongest office leasing volume since the pandemic - approximately 3 million square feet was leased in the city during the quarter. The Financial District commands the highest rents in the city, with a 32.0% YoY volume increase.

True CBD Lifestyle

The Property is strategically located on the corner of Kearny and Sutter Street, nestled within San Francisco’s Central Business District. With a Walk Score of 100, the access to amenities is unparalleled. The BART system is located a block away as well, offering seamless access to the rest of the city.

Attractive Basis

At $47,500,000 in total unpaid principal balance, the Loan basis is well below the Borrower’s acquisition basis in 2019 of $74,500,000 and the replacement cost.