Seven Equity grabs ex-WeWork Tenderloin office for $6.8M
SF's distressed-office repricing is where the next cycle's basis gets set, and buyers are assembling at pennies on the prior dollar.
- Source Briefing
- Read original source · The Real Deal
Seven Equity has bought 25 Taylor Street, a 50,000-square-foot former WeWork office in San Francisco’s Tenderloin, out of receivership for nearly $6.8 million, one more distressed office trade at a fraction of its old value.
Why it matters
San Francisco’s distressed-office repricing is where the next cycle’s basis gets set, and buyers like Seven Equity are quietly assembling a portfolio at pennies on the prior dollar. A building that carried an $18.5 million loan in 2013 traded for under $7 million, the kind of reset that lets a new owner underwrite rents the prior capital stack never could. For developers and value-add investors, the Tenderloin trade is a signal: the floor for well-located SF office is now low enough that the math works again for patient capital, even in a submarket most had written off. The WeWork name is the tell of how far sentiment fell.
The news that moved today. Free email. Every weekday morning.
The numbers
War Horse Cities converted the building for WeWork in 2013; WeWork leased 42,565 square feet for nearly a decade before vacating in 2021, the same year the $18.5 million loan defaulted. A receiver was appointed in 2023 with a $16.9 million outstanding balance. Seven Equity paid nearly $6.8 million, and the deal extends its distressed-SF push after buying the 93,000-square-foot 731 Market Street for about $15 million in 2025.
What’s next
Watch what Seven Equity does with the asset, reposition, convert or hold, and whether more Tenderloin and mid-Market office clears at similar resets. Each low-basis trade makes the next new lease pencil. More at the San Francisco hub.
More in Foreclosure & Distress News.
Quick answers
- What is the latest on 25 Taylor Street?
- Seven Equity bought 25 Taylor Street, a 50,000-sf former WeWork office in SF's Tenderloin, out of receivership for nearly $6.8M, a steep distress discount.
- What are the key numbers for 25 Taylor Street?
- Purchase price: $6.8M; Building size: 50K sf; Receiver balance: $16.9M; WeWork exit: 2021.
- Where does the information on 25 Taylor Street come from?
- The story cites The Real Deal.
Sources
Also reported by