Google-Leased R&D Asset Trades in San Francisco
The property sold for almost 60 percent more than it did three years ago.
A joint venture between 1754 Properties and Vander Capital Partners purchased 40 Jessie St., a 49,560-square-foot lab and office asset in San Francisco, in a transaction first reported by The Registry. Google fully leases the building through 2030.
The six-story property traded for nearly $28 million, public records show. The sale price was almost 60 percent higher than in the previous transaction. The sellers, DRA Advisors and Long Market Property Partners, had purchased the asset from Golden Gate University in 2023 for $17.6 million.
Valley National Bank originated a $20.5 million acquisition loan for the current deal, due 2031, according to Yardi Matrix information.
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An early 1900 printing house, conversion for 40 Jessie was approved in 2004, with the building undergoing heavy renovation and expansion in 2007. It opened as a lab space building in 2008 and was later subject to cosmetic renovations in 2017. Amenities include conference rooms, a dining area and restrooms.
Located at the intersection of Ecker and Jessie streets, the property is in the South Financial District and close to multiple dining and transit options, including Transbay Terminal.
Google leases several office spaces within half a mile of 40 Jessie St., including 429,795 square feet at 345 Spear St. and 125,733 square feet at 2 Harrison St. Both leases were renewed and expanded in 2025.
San Francisco office sales pick up pace
The office sales volume in San Francisco totaled $959 million across 16 transactions in the third quarter, a recent Colliers report shows. The city recorded $2.6 billion in investments year-to-date across 43 transactions, marking an increase compared to the less than $2 billion across 36 deals recorded during the same period last year. Moreover, due to positive office building trends, renewed investor interest is becoming more noticeable and capital is being poured in from other regions.
Recent notable transactions in the area included DivcoWest’s $468.8 million, 49 percent stake acquisition in 101 California St., and New York-based Seven Equity Group’s $65.5 million purchase of 875 & 899 Howard Street from Hudson Pacific Properties.
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