San Francisco: Phelan Building owner gets notice of default
The Phelan Building owner got a notice of default in late October on a $215M AIG loan, with about $192M owed, the SF Standard reports.
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The owner of the Phelan Building, the 11-story flatiron office and retail property at 780 Market Street in San Francisco, received a notice of default in late October, the SF Standard reports, citing city tax records. The default concerns a $215 million loan from AIG.
Why it matters
The Phelan Building is one of the better-known landmarks on lower Market Street, and a default notice on a loan of this size is a visible marker of how far values on the corridor have moved since the last decade. The SF Standard reports the borrower, Phelan Building LLC, bought the property in 2016 for $374 million from Thor Equities. The loan equals about 57 percent of that purchase price.
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The numbers
According to the SF Standard, about $192 million remains owed on the AIG loan, and AIG is seeking to foreclose. The report also describes the building’s retail floor: roughly 52,000 square feet of retail space, the largest of which has sat empty since Marshalls left in 2021. A Verizon store and a boba shop remain, and Figma has leased several floors since spring 2024, the outlet reports.
We have not independently confirmed the notice of default against the recorded document. The figures above are attributed to the SF Standard’s reading of city tax records, and the report does not say who filed the notice. Phelan Building LLC’s representative did not respond to the outlet’s request for comment, and a representative of Newmark, which works with the owner, declined to comment.
What’s next
Under the SF Standard’s account, the next stage after a notice of default would be a sale at auction. The report does not give a timeline or say whether the borrower can cure the default. We will update this story when the recorded notice, any notice of trustee’s sale or a filing by the borrower becomes available. Related coverage of the corridor is in our San Francisco market page.
Quick answers
- What is the latest on Phelan Building?
- The Phelan Building owner got a notice of default in late October on a $215M AIG loan, with about $192M owed, the SF Standard reports.
- Who is developing Phelan Building?
- Thor Equities, Figma and AIG, according to SF Standard.
- What are the key numbers for Phelan Building?
- Loan: $215M; Still owed: $192M; 2016 price: $374M.
Sources
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