San Francisco, CA
Who gets to participate in San Francisco's real estate reset?
To be clear, not all lenders are out on the San Francisco office market. But those who are active are inclined to make smaller bets compared to the financing deals of the previous decade.
For example, ASB Real Estate Investments, which sold 989 Market to BH Properties under pressure from its lender, also unloaded another office building this month at 795 Folsom St. According to property records, Alaska-based Fountainhead Development group borrowed from First National Bank of Alaska to execute the $48.3 million deal, which closed at less than half the previous price of $109.6 million the building last traded for in 2013.
Meanwhile, at San Francisco’s famed California Street corridor, a private commercial real estate credit manager called Prime Finance helped the local group of Redco and GCI Contractors close on a $28.5 million deal for the eight-story tower at 300 California St. in May, according to property records. A decade ago, the building traded for twice as much, for $58 million.