The development firm, which was launched in late 2023 by ex-Hines executive Paul Paradis and Rob Hollister, the former president of the Sobrato Organization, paid $7.6 million, or roughly $100 per square foot, to purchase the building out of foreclosure. Seller East West Bank, which took control of the property the same year that Bayhill was created, did not respond to a message seeking comment.
Two years ago, the 76,500-square-foot Market Street building almost became a shelter for women experiencing homelessness and abuse. Now, Bayhill, which is also behind a fairly recent bid to construct a 71-story residential tower in the Financial District, will reopen the vacant property building to office tenants — an unexpected move given its location on a stretch of Market Street hit hard by vacancies, declining foot traffic, quality of life issues and a slow post-pandemic recovery.
Paradis, the firm’s founder and CEO, said he has seen improvements in the Civic Center and Mid-Market area, and described 1128 Market as a “well taken care of building” located directly near a major transit hub that was available at a low price — an opportunity too good to pass up.
“Like in most situations in the city, if you have a quality building near transit, tenants of all different flavors will consider your building. And so we’re not targeting any specific industry,” Paradis said, a nod to the Mid-Market neighborhood’s recent history as a tech hub that had housed industry giants like Uber, Zendesk, Block (formerly known as Square) and social media platform Twitter, now X Corp.
Years before surrendering the property to their lender at the end of 2023, former owners Canyon Catalyst Fund and Rubicon Point Partners paid nearly $50 million to acquire 1128 Market at the height of the city’s tech boom in 2018. The deal was supported with a $42 million loan from East West Bank, which later accused the investors of falling behind on payments, in a lawsuit. The complaint was dismissed when the owners agreed to hand over the keys to the bank.
The building’s sale to Bayhill represents a close to 85% discount from its pre-pandemic value. While most downtown office buildings have seen massive reductions in values over the last six years, this price stands out, and is only topped by one other Mid-Market building. The, at the time vacant, 16-story office tower at 995 Market St. traded hands for $6.5 million in 2024, or $72 per square foot — a near 90% drop from its 2016 value. That sale also took place after the former owner defaulted on a large loan.
Today, the 995 Market building is full — it operates as a startup hub and hacker house hybrid known as Frontier Tower.
“It’s no mystery: the lower your basis, the more effectively you can compete on rent,” said Paradis, the newly minted owner of 1128 Market.
With his firm’s acquisition of the long-struggling office building, Paradis has effectively positioned the property as a critical test case for whether fresh ownership and an infusion of capital can catalyze a broader revival in the Civic Center and Mid-Market corridors.