Peninsula Land & Capital has acquired 505 Montgomery St., a 24-story tower in San Francisco’s Financial District, for $105 million.

Led by Palo Alto, Calif.-based investor Roger Fields, Peninsula Land & Capital’s purchase is just one of three San Francisco office deals to top $100 million in 2025.

The seller, German asset management firm DWS Group, had owned the property since 2015, when it paid $118.5 million for the 344,000-square-foot building completed in 1986.

According to the San Francisco Business Times, negotiations between Fields and an affiliate of DWS began in June. The reported $300-per-square-foot pricing was contingent upon the building’s largest tenant, Latham & Watkins, agreeing to extend its 117,000-square-foot lease beyond 2028.

At roughly $305 per square foot, the Montgomery sale closed above San Francisco’s 2025 average of $263 per square foot for office trades through July, per Yardi Research data.

For Roger Fields and Peninsula Land, it’s the second major bet on the San Francisco office market. In 2023, the firm purchased 550 California St., just across from 505 Montgomery, paying $40.5 million for the 365,000-square-foot building acquired from Wells Fargo. Vacant at the time, 550 California has since rebounded to 82% occupancy in two years — a markedly stronger position than the average San Francisco tower.

According to Yardi Research data, market vacancy reached 26.3% in July — the highest among Western metros and well above the 19.4% national rate. Even so, asking rents in San Francisco remain the region’s priciest, averaging nearly $59 per square foot.