The $101 Million Office Tower Sold For $62M: Inside The Drama At 353 Sacramento Street, San Francisco
The iconic 23-story office tower at 353 Sacramento Street in San Francisco’s Financial District has recently become a high-profile symbol of the city’s evolving commercial real estate market, particularly following a significant financial transaction in mid-2025. This Class A property, a staple of the North Financial District skyline, has a history of housing major corporate tenants, but its recent sale of a distressed loan has put it squarely in the spotlight, highlighting the deep discounts now common for prime office assets.
Originally constructed in 1982, the building is a distinguished structure totaling nearly 285,000 square feet, strategically positioned at the corner of Sacramento and Battery streets. The latest news, confirmed in June 2025, involves a joint venture acquiring a massive non-performing loan tied to the property, a move that signals a major shift in ownership and future direction for the building. This deep-dive explores the property’s architectural features, its prime location, and the financial drama that is reshaping its future.
353 Sacramento Street: Profile and Financial History
The 353 Sacramento Street tower is one of the most recognizable structures in its submarket, known for its strategic location and high-quality office space. Here is a detailed profile of the building and its recent financial turmoil.
- Address: 353 Sacramento Street, San Francisco, CA 94111
- Location: North Financial District, situated between Jackson Square and the main Financial District.
- Building Class: Class A Office Tower
- Year Built: 1982
- Height/Stories: 23 stories
- Total Square Footage: 284,751 square feet
- Lot Size: Compact 0.29-acre lot
- Design Feature: Efficient Side Core Design, allowing for flexible and open-plan office layouts.
- Major Tenants: The building has attracted high-profile tenants, including Wells Fargo, Ramp, Merge, and Even-up Law.
- Financial Event (June 2025): A $101.6 million non-performing loan secured by the property was sold to a joint venture between New York Life Real Estate Investors and Lincoln Property Company.
- Sale Price of Loan: The loan was acquired for a reported $62 million, representing a significant discount and marking the resolution of a distressed debt situation.
Architectural Features and Modern Amenities
Despite its construction date in the early 1980s, 353 Sacramento Street has been continuously updated to maintain its status as a premier Class A office destination. The building’s design prioritizes efficiency and tenant experience, which is crucial in San Francisco’s competitive market.
One of the key architectural elements is its Efficient Side Core Design. This design choice places the building’s core (elevators, stairwells, and restrooms) on one side of the structure, maximizing the amount of usable, open space on each floor plate. This allows businesses to implement modern, flexible office layouts, accommodating everything from traditional cubicles to open-plan tech workspaces.
The building features floor plates that typically range from 11,500 to 13,500 rentable square feet (RSF), offering substantial room for growing companies. Beyond the office space itself, the property boasts a considerable 10,895 square feet of street-level retail, adding vibrancy and convenience for tenants and the surrounding neighborhood.
In a nod to the post-pandemic demand for enhanced workplace environments, 353 Sacramento also features a dedicated Tenant Hub Full Floor Amenity Center. This center provides shared facilities and services, which are critical for attracting and retaining top-tier businesses in the current market.
The Financial District's Distressed Debt Trend
The recent transaction involving the $101.6 million loan on 353 Sacramento Street is not an isolated incident; it is a clear reflection of the broader challenges and opportunities currently facing the San Francisco commercial real estate market. The sale of a non-performing loan at a roughly 39% discount ($62 million on a $101.6 million debt) underscores the deep value correction occurring in the Financial District.
The purchasers, New York Life Real Estate Investors and Lincoln Property Company, are institutional investors known for their strategic long-term plays. By acquiring the distressed debt, they have positioned themselves to potentially take ownership of the building at a significantly reduced basis. This move is often seen as a bet on the long-term recovery and stability of the San Francisco market, especially for well-located, high-quality Class A office assets.
This type of transaction is highly relevant to understanding current San Francisco commercial real estate trends. It signals that while the market is struggling with high vacancy rates and remote work challenges, sophisticated capital is still eager to invest, provided the price reflects the current economic reality. The building’s prime location, nestled between Jackson Square and the Financial District, and its proximity to transit hubs like the Ferry Building and BART/MUNI lines, make it an attractive long-term investment despite the short-term distress.
Connectivity and Strategic Location
The enduring value of 353 Sacramento Street is inextricably linked to its strategic position in the North Financial District. This area is a nexus of commerce, culture, and connectivity, making it a highly desirable address for professional services and technology firms alike.
The tower sits at the intersection of Sacramento and Battery streets, providing immediate access to the bustling core of the Financial District while also being a short walk from the historic charm of Jackson Square. This proximity offers tenants a blend of traditional corporate environment and trendy dining and retail options.
For commuting tenants, the building's location is a significant asset. It provides convenient access to all major public transit options, including the Embarcadero BART/MUNI station, and is just a short distance from the Ferry Building, a major transportation hub for Bay Area ferries. This connectivity is a non-negotiable feature for top-tier businesses looking to attract a regional workforce. The ongoing availability of office space, ranging from 5,726 to over 40,000 square feet, presents a unique opportunity for businesses looking to secure a premier address in a market that is currently offering considerable value.
The story of 353 Sacramento Street is a microcosm of San Francisco’s current real estate narrative: a high-quality asset undergoing a necessary financial reset. The acquisition of its distressed loan by major institutional players suggests a strong belief in the building's long-term potential, cementing its role as a key player in the future of the Financial District.
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