Callahan Capital Partners, a real estate private equity firm based in Chicago, has acquired the 101 Mission Street office tower in San Francisco’s Financial District. The purchase price was about $82 million, nearly half of what the previous owner paid for the property.
The 22-story building was previously owned by Vanbarton Group, which bought it in 2018 for $163 million. After investing over $30 million in renovations to common areas and tenant spaces, Vanbarton defaulted on a $93 million mortgage tied to the property. The recent transaction was structured as a deed in lieu of foreclosure, with lenders selling the asset after taking control due to the default.
Last July, Elliott Investment Management acquired the outstanding debt on 101 Mission Street before putting it up for sale. The building is approximately 213,000 square feet and currently more than half occupied. Notable tenants include Rubicon Point Partners and Constellation Brands.
This acquisition marks Callahan Capital’s first office investment in San Francisco. CEO Tim Callahan stated: “move forward quickly with a thoughtful repositioning strategy.”
Probis Strategic Solutions, a local real estate firm that partnered with Callahan Capital on this deal, cited signs of improvement in San Francisco’s office market as artificial intelligence companies expand their presence and lease more space. David Dowdney, managing partner at Probis, said: “believe[s] high-quality, well-located office buildings in San Francisco are entering a new phase of opportunity, and 101 Mission is exceptionally well-positioned to benefit from that recovery.”
Previously, Brookfield Properties had explored acquiring the debt associated with 101 Mission Street but did not reach an agreement with lender partners ING Group.
— Chris Malone Méndez
