$3,850,000 Acquisition in Waterfront, CA
San Francisco Office Building Acquisition
in Waterfront District
Loan Amount: $3,850,000
Loan Term: 12 Months
LTC: 65%
Lien Position: 1st Deed of Trust
Rubicon Mortgage Fund, LLC closed a $3,850,000 acquisition loan for a vacant office building located in San Francisco’s highly sought after Waterfront district. The property was acquired for investment purposes by a local, experienced real estate investor with a strong track record across the San Francisco Bay Area.
The Waterfront district continues to stand out as one of San Francisco’s most desirable office submarkets, attracting venture capital firms, private equity groups, and finance driven companies seeking character rich office space in a prime, centrally located area. Situated near Levi’s Plaza and the Embarcadero, the neighborhood has remained a consistent hotspot for professional tenants even as the broader office market has adjusted.
Why Traditional Bank Financing Was Not Feasible
Although the asset is well located and highly versatile, traditional bank financing was not an option at acquisition due to the building being vacant at the time of purchase. Many banks require stabilized cash flow and existing tenancy, which can limit opportunities for investors looking to acquire value add or repositioning assets.
This transaction highlights where private lending plays a critical role. Rubicon was able to underwrite the opportunity based on asset quality, location fundamentals, borrower experience, and a clear business plan for stabilization.
A Value Add Office Building Investment Strategy
The borrower acquired the property at an attractive cost basis, creating significant upside potential. The plan includes completing targeted renovations to modernize the space while preserving the character that makes Waterfront office buildings so desirable.
Once improvements are complete, the borrower intends to market the building to a professional, finance related tenant seeking well located San Francisco office space. Upon achieving lease up and stabilized cash flow, the borrower plans to refinance the property with traditional bank financing, taking out the Rubicon loan.
From an investment standpoint, the building offers flexibility and multiple paths to value creation. With relatively modest improvements and the right tenant profile, the property is well positioned to become a strong long term asset within the borrower’s growing portfolio.
The Advantage of a Local Private Lender
This deal is a strong example of how a local private lender can add value beyond capital alone. Rubicon’s deep familiarity with San Francisco submarkets, including the Waterfront district, allowed us to properly assess the upside and long term demand for high quality office space in this location.
By understanding both the challenges and opportunities within the current San Francisco office market, Rubicon was able to structure financing that supported the borrower’s vision while mitigating risk.
Supporting the Recovery of the San Francisco Office Building Market
Transactions like this play an important role in the ongoing recovery of the San Francisco office market. By financing well located properties with experienced local owners, capital can be deployed into projects that improve building quality, attract tenants, and strengthen the overall market.
This acquisition reflects Rubicon’s continued commitment to supporting experienced investors and facilitating thoughtful real estate projects throughout San Francisco and the greater Bay Area.
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