Lone Star Acquires Loan Secured by San Francisco Office Tower

DALLAS & NEW YORK & LONDON & TOKYO--(BUSINESS WIRE)--Lone Star Funds (“Lone Star”) today announced that an affiliate of Lone Star Real Estate Fund VII, L.P. has acquired the mortgage secured by 600 California Street in San Francisco, CA.

600 California is a 360,000-square-foot, Class A office tower distinguished by its exceptional views, efficient and nearly column-free floorplates and rare outdoor amenity potential. The property is among the highest-quality office buildings in San Francisco and is located at the intersection of the Financial District and Jackson Square, home to many of the city’s leading technology, financial services, private equity, venture capital and legal firms.

Approximately 80% of the building features unobstructed San Francisco Bay and landmark views, a highly differentiated attribute in the city’s office market. The property includes an existing private outdoor terrace, along with the ability to create an expansive rooftop terrace amenity that is rare and highly sought after in San Francisco.

Institutional ownership has also invested significant capital into the asset in recent years, including a modern three-story lobby, full elevator modernization and major building-systems improvements. The building’s unique attributes—combined with substantial occupancy-ready space, flexible floor plates ranging from 15,000 – 30,000 square feet, and contiguous blocks of vacancy— can meet the needs of leading tenants seeking immediate occupancy and scale.

“San Francisco has entered a new phase of recovery, with tenant activity strengthening across the downtown core,” said Jérôme Foulon, Global Head of Commercial Real Estate at Lone Star. “600 California is a high-quality, well-located asset that aligns directly with that momentum.”

Newmark was the exclusive advisor to the Seller on the transaction.

About Lone Star

Lone Star is a leading investment firm advising funds that invest globally in private equity, credit and real estate. The firm has been successfully navigating complex situations for 30 years. The funds are experienced value investors that seek opportunities in situations that are in flux or complicated by specific structural or financial factors, regardless of the prevailing market environment. Our deep bench of senior leaders and expert deal professionals ensures a strong foundation for successful investments and strategic decision-making. Since the establishment of its first fund in 1995, Lone Star has organized 25 private equity funds with aggregate capital commitments totaling approximately $95 billion. For more information regarding Lone Star Funds, go to www.lonestarfunds.com. Follow us on LinkedIn.