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.
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 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.