The owner of a four-story office building in San Francisco’s Jackson Square has sold it for an undisclosed price after it was reappraised at $13.3 million, 38 percent less than a decade ago.
An affiliate of Oakland-based David Herscowitz sold the 30,100-square-foot, mixed-use building at 244 Jackson Street, the San Francisco Business Times reported. The affiliate’s name was not disclosed.
In 2014, Herscowitz secured a $13.6 million loan tied to the property, which was fully leased and valued at $21.3 million, according to a recent bond report.
In July, the landlord defaulted on the loan. With both major tenant leases expired, the building was reappraised at $13.3 million, a 38 percent drop.
The building was then listed via JLL for an undisclosed price. Brokers Rob Hielscher, Adam Lasoff and Caroline Reynolds held the listing.
According to commentary in the latest bondholder report, “borrower has marketed the property for sale and has chosen a buyer. Closing is anticipated to occur (in the) 4th quarter.”
The building, built in 1913 and renovated in 1997, maintained full occupancy from 2021 to early this year. Then its top tenants, Premier Tech and Scott Alley Associates, moved out when their leases expired.
The deal is the latest building sale in Jackson Square, where wealthy investors and high-end retail tenants have gravitated to in the last two years, according to the Business Times.
In February, a company linked to former Apple designer Jony Ive bought the 5,200-square-foot Little Fox Theatre building at 535 Pacific Avenue in Jackson Square for $59.7 million, after buying up half a dozen properties around the block.
In May, Thrive Capital, founded by the brother of former presidential advisor Jared Kushner, bought the 10,300-square-foot Engine No. 1 firehouse building at 451 Pacific Avenue in Jackson Square for $9 million.
— Dana Bartholomew