Rialto Capital Has Foreclosed on 580 Market Street
The Financial District office building saw its value slide to $9.9 million after a loan default.
Updated on Sept. 30, 2026 in Commercial
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The office property at 580 Market Street has been seized by lender Rialto Capital following the owner's failure to repay a $15.7 million loan. The building, which sits near the Montgomery BART station, faced foreclosure after the loan matured in mid-2025.
Why it matters
This seizure illustrates the ongoing distress in the downtown office market as high vacancy rates and declining property valuations squeeze owners. The building's value has fallen significantly from its 2015 purchase price of $24.2 million.
Official records show $17.5 million in total unpaid debt for the property, which was last valued at $9.9 million in March 2026. The building sits in a market facing a 27.2 percent total office vacancy rate.
The players
Rialto Capital
The lender that recently took control of the office building at 580 Market Street.
Paragon Company
The former owner of 580 Market Street that acquired the building in 2015.
The details
Rialto Capital secured control of the 35,000-square-foot building by paying $5 million after a notice of default was served to the Paragon Company in October 2025. Occupancy at the site reached only 53 percent as of December 2024. A formal disposition of the asset is anticipated in the first quarter of 2028.
Timeline
2015: Paragon Company acquired 580 Market Street.
June 2025: The $15.7 million loan matured.
October 2025: A notice of default was served to the owner.
March 2026: The property was valued at $9.9 million.
Q1 2028: Disposition of the building is expected.
Across the Bay
The foreclosure at 580 Market Street reflects the ongoing volatility within the local commercial real estate sector. This event follows the citywide trend of record-high office vacancy rates, which currently sits at 27.2 percent.
Commuters and those working near the Montgomery BART station may see changes in property management or building activity over the coming months. While the building is currently under new control, a full sale of the asset is not expected until 2028.
The takeaway
The foreclosure of 580 Market Street serves as a reminder to watch the recovery of the Financial District as office valuations continue to re-price. Keep an eye on local commercial property listings for future updates on the building's status.
Further reading
For more updates on the state of downtown property, read our San Francisco Commercial section.
Source note: This article includes information reported by The Real Deal New York.
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