The value of Yelp’s former San Francisco headquarters has fallen by nearly 60 percent in appraisers’ latest report.
The 11-story building at 55 Hawthorne Street was valued at $51.2 million in November 2025, down from $123 million when a CIM Group affiliate bought it in 2016, the San Francisco Business Times reported, citing commercial mortgage-backed securities data from Morningstar released this month.
Yelp was the anchor tenant at the property before it began vacating prior to the pandemic and subsequently listed its offices for sublease in the years since then. After CIM bought the building, the company expanded to occupy 94 percent of the building’s 145,000 square feet. Its lease at the building expired last July; its headquarters is now listed as 350 Mission Street.
As of last November, the building was roughly 75 percent vacant, according to a court filing cited by the Business Times. The month before, CIM’s lenders filed a lawsuit against the building owner, alleging CIM stopped making monthly payments on a $61.5 million loan originated when it bought the building in 2016. Lenders served the CIM affiliate with a notice of default for the note at the end of last year. The latest property appraisal now places the building’s value below the amount of debt tied to the building.
Lenders are now seeking to foreclose as a court-appointed receiver runs the property in CIM’s place. In January, the lenders’ attorneys asked a San Francisco court to continue the case against the CIM affiliate for 120 days, which would allow time to consider all options, including moving forward with a nonjudicial foreclosure.
CIM has been trying to sell the building for nearly two years. The Los Angeles-based firm listed the property for sale in the spring of 2024, though no deal was ever signed and its listing price at the time was not disclosed.
Before the court-appointed receiver took over operations at the building, CIM was seeking lease tenants to fill its floors. In recent months, one of Yelp’s subtenants signed a short-term direct lease for 17,000 square feet, while artificial intelligence startup Distyl AI announced plans last fall to move into the building. — Chris Malone Méndez
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