First Citizens Bank Buys Bay Area Building

First-Citizens Bank & Trust Co., a First Citizens BancShares Inc. subsidiary, has acquired a 160,000-square-foot office property in San Francisco for $92 million, the company shared with Commercial Property Executive. Align Real Estate was the seller, according to Yardi Matrix information.

Align Real Estate purchased the six-story low-rise office building in 2017 for $64.6 million, the same source shows. The property features an 8,000-square-foot rooftop terrace that acts as an event space. Following the acquisition, First Citizens Bank plans to renovate the asset, which hasn’t been done since 2009. The new owner is anticipating a move-in date sometime in 2027.

Once renovations are complete, the First Citizens Bank division will occupy a portion of the building and lease the remaining space. First Citizens’ Silicon Valley Bank division has had a presence in the area for the last 25 years. The company currently has six branches in the metro.  

The company employs more than 500 associates in San Francisco alone, with 1,000 employees in the greater Bay Area. As growth continues, First Citizens Bank is looking for opportunities to expand across the region.

---

READ ALSO: How Generative AI Is Reshaping Bay Area CRE

---

This represents the second Bay Area office acquisition for the company in 2025. In August, First Citizens Bank acquired 250 University Ave. in Palo Alto, Calif., a 38,000-square-foot office building for $82 million, the Silicon Valley Business Journal reported. The property is expected to undergo a renovation as well, with a similar opening date in 2027.

Located at 667 Mission St., the San Francisco building is under a mile from six public transit stations. The property is in proximity to Interstate 80, with access to the San Francisco-Oakland Bay Bridge. The San Francisco International Airport is within about 14 miles, with the San Francisco Museum of Modern Art around the block and the Ferry Building within 1 mile from the property.

San Francisco continues to rebound

The San Francisco office sector has struggled in recent years, but with the growth of AI, the market is picking up. According to a third-quarter report from Cushman & Wakefield, the vacancy rate continues to improve. The report shows that the vacancy rate dropped to 33.6 percent from 34.5 percent a year ago. This is also the first time since 2019 that the metro is on track for positive absorption, the report said.

In October, a Class A office tower in San Francisco known as The Spear, announced two tenants, coworking firm CANOPY and a retail tenant, Arsicault Bakery, both of whom will occupy the ground floor. The building is currently being renovated by its owner, Presidio Bay Ventures.

Also in September, Shorenstein Investment Advisers took a bite in the office sector with a $144.5 million acquisition of 110 Park Place and 1200 Park Place, part of a 209,000-square-foot mixed-use development. Both assets are fully leased and feature amenities including outdoor lounges, EV charging stations and covered parking.