Downtown San Francisco buildings once worth $74m sell for a pittance

Two office buildings near Union Square that were bought for $74.4m in 2019 were sold at a December foreclosure auction for about $5m; reported occupancies and appraisals have fallen sharply as downtown vacancy rose.

Two office buildings on the edge of San Francisco's Financial District and Union Square were sold at a foreclosure auction in December for about $5 million. The properties were purchased for $74.4 million in 2019 and experienced large occupancy declines after the pandemic. The auction followed mortgage defaults and the buyer is listed as SVN Properties LLC. Key details: - Sale price at the foreclosure auction in December was about $5 million. - The buildings were purchased for $74.4 million in 2019 and appraisals later fell by more than 75% to roughly $18 million, per reports. - Occupancy of the two buildings dropped about 60% between 2019 and 2024, and downtown vacancy was reported at 22% in 2025. - Reported unpaid debt tied to the properties was estimated at $56.7 million and the prior owners had defaulted on mortgage payments, leading to the auction. Summary: The sale shows large declines in valuation and occupancy for these downtown office properties and aligns with wider reports of elevated vacancy in the area. Undetermined at this time.