Lenders Track San Francisco Office Sales for Directional Signals

Allen Matkins partner and chair of the firm’s Global Real Estate Group, Tony Natsis, was recently quoted in Real Estate Capital USA. Some markets may be reaching their bottom as evidenced by the recent sale of San Francisco's 123 Townsend Street, marking a potential turning point for pricing and valuations. The property was acquired by local investor Rubicon Point Partners for around $73 million, half of its 2021 value, signaling a possible market bottom. The use of various transaction models, including deeds in lieu of foreclosure, is observed in these sales, reflecting lessons learned from past real estate cycles.

“When the lender is reluctant to foreclose on the loan and take the asset back, they would go to their borrower and make a deal with them to sell,” Natsis says.  

Using deeds in lieu of foreclosure is a lesson learned from previous real estate cycles, including the global financial crisis, he adds.

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