A New Era of San Francisco Commercial Real Estate Begins – The San Francisco Standard

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Similar to 33 New Montgomery, a 210,000-square-foot office building at 600 Townsend West was listed for sale last month by real estate services firm JLL. The building has been owned by Japanese investor Toda Corp. for over 30 years, and the firm is seeking roughly $74 million for the property roughly a mile southwest of Oracle Park.

While Toda does not appear to be under significant pressure from lenders or facing a lack of cash flow because of low occupancy (JLL’s listing says it is 92% leased)—its price guidance of roughly $350 per square foot does fall in line with a neighboring building recently sold back to one of its original owners at a major discount. 

A source with knowledge of the deal said the initial round of bids for the property topped out around $67 million. 

Less than two blocks away from Toda Corp.’s property, a different story with a similar outcome is playing out at 410 Townsend St. 

There, the building’s previous owner, Clarion Partners, fell behind on a roughly $40 million loan it took out in 2019, the same year it purchased the 76,000 square-foot office for $86 million. For a point of comparison to current market values, that works out to roughly $1,130 per square foot. 

According to public records, Clarion handed the property back to its lender this month. Before its value plummeted, the building was home to the likes of TechCrunch, Eventbrite, Zendesk and Adobe. A recent online listing showed that three out of the four floors are available for lease. 

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