This Week's Bay Area Deal Sheet
Rialto Capital listed 340 Bryant St. for sale in the low $10M range, according to the San Francisco Business Times.
The 63K SF SoMa property was acquired by the special servicing arm of Miami-based Rialto Capital last November at auction, where it commanded $12M. WeWork was the building's largest tenant, but the company vacated 48K SF in September 2021.
Computer manufacturer Logitech leased 15K SF in the building until last April.
The pandemic took its toll on many San Francisco buildings, including this one. The asset rapidly declined in value from its 2017 peak when Pollock Financial Group, based in Portola Valley, purchased the asset for $49M. Eventually, Pollock defaulted on its loan.
SALES
Irvine-based Kairos Investment Management Co. acquired $90M in debt that collateralized 550 Kearny St. from the Canadian Imperial Bank of Commerce.
According to the Business Times, the bank shed the 196.4K SF Chinatown asset to lessen its exposure to U.S. office properties.
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Two investors sold a Mountain View multifamily complex at 1030 Castro St.
Affiliates of Los Angeles-based Cityview and Charleston, South Carolina-based Greystar Properties sold the 164-unit complex to Palo Alto-based REIT Essex Property Trust for $101M, the San Francisco Business Times reports.
LEASES
Another AI firm has closed the largest sublease deal of the year in SoMa’s Design District , according to the Business Times. Locally based Scale AI subleased 180K SF from Airbnb at 650 Townsend St.
The transaction more than triples the size of Scale AI’s existing 50K SF HQ at 155 5th St., also in SoMa. The eight-year-old company raised $1B at and is now valued at $13.8B, according to its website.
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JLL has expanded in Silicon Valley. The brokerage firm leased 5.4K SF of office space at 356 Santana Row in San Jose. This is the tenth office JLL has opened in Northern California.
PEOPLE
Candida Hoeberichts has joined BGO as managing director in San Francisco. In her role, Hoeberichts will be responsible for the firm’s messaging, investor engagement and capital raising strategy in the western region of the U.S.
