Howard Street Office Buildings Sold for $65.5 Million
The 280,000-square-foot property at 875 and 899 Howard Street changed hands this month.
Updated on Sept. 28, 2026 in Commercial
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Seven Equity Group has acquired two historic office buildings near the intersection of Howard and Fifth Streets. Hudson Pacific Properties sold the 1920-era site as part of a move to divest from vacant office assets.
Why it matters
The sale highlights the ongoing shift in downtown San Francisco real estate amid a citywide office vacancy rate of 25.9 percent. With $12.6 billion in outstanding local office debt, the transaction reflects the current market valuation for aging, partially vacant properties.
The transaction closed at $65.5 million for the 280,000-square-foot site, while the citywide office vacancy rate stands at 25.9 percent. Whether the new ownership will seek to redevelop or lease the vacant space remains unknown.
The players
Hudson Pacific Properties
The real estate investment trust that previously owned and sold the Howard Street office property.
Seven Equity Group
The investment group that acquired the two Howard Street office buildings.
Genesis Capital Group
The financial institution that originated a $51 million loan for the property acquisition.
The details
Seven Equity Group partnered with a private investor to complete the acquisition of 875 and 899 Howard, backed by a $51 million loan from Genesis Capital Group. At the time of closing, the 875 Howard building was 36 percent occupied, while the 899 Howard building sat fully vacant. The property was originally constructed in 1920 and held by Hudson Pacific Properties since 2007.
Timeline
1920: The two Howard Street buildings opened.
2007: Hudson Pacific Properties purchased the buildings for $46 million.
June 2026: Hudson Pacific Properties began seeking buyers for its vacant office assets.
August 2026: San Francisco hit a total of $12.6 billion in outstanding office debt.
September 2026: The sale of 875 and 899 Howard closed.
Across the Bay
The sale follows the pattern set by the city's 25.9 percent office vacancy rate as the local market navigates a period of significant commercial real estate turnover. This transaction aligns with broader trends in San Francisco where older, vacant stock is being traded amid the city's $12.6 billion office debt load.
Residents near Howard and Fifth Streets should watch for potential construction or site improvements as new ownership takes over the properties. There is no immediate change to street-level access or traffic patterns as a result of the sale.
The takeaway
The acquisition of these Howard Street buildings highlights the market's current focus on repositioning historic assets during a period of high vacancy. Watch for any future permit applications at 875 or 899 Howard that could signal renovation plans for the vacant office space.
Further reading
For more on the current state of downtown commercial real estate, visit our Commercial section.
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