Real Estate Developer Soaked by Multimillion Dollar Loss on San Francisco Office Building
Real estate developer Clarion Properties took a $60 million loss on a San Francisco office building it bought five years ago.
The property at 410 Townsend Street is a four-story, 76,000-square-foot building. During the halcyon days of the tech industry, 410 Townsend was known as a startup village and was valued at $1,100 per square foot. That adds up to $86 million, which is what Clarion Partners bought the property for in 2019. That high price is emblematic of the high valuations of prime office property before the COVID-19 pandemic.
Fast forward to late 2023 when San Francisco's office market and the entire commercial sector has been brought low by record-high vacancy rates, and the picture changes dramatically. According to information compiled by ATTOM, a real estate data and research firm, California led the nation in commercial foreclosures in 2023 with 187. Unfortunately for Clarion Partners and many other commercial property investors, San Francisco is the scene of much of that financial carnage.
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