{"id":279907,"date":"2026-04-22T07:30:24","date_gmt":"2026-04-22T07:30:24","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/279907\/"},"modified":"2026-04-22T07:30:24","modified_gmt":"2026-04-22T07:30:24","slug":"lone-star-funds-snags-office-tower-after-auction-falls-flat","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/279907\/","title":{"rendered":"Lone Star Funds Snags Office Tower After Auction Falls Flat"},"content":{"rendered":"

Lone Star Funds is now officially the owner of a 20-story office tower once helmed by WeWork in San Francisco after a public foreclosure auction held last week drew no takers.<\/p>\n

The roughly 360,000-square-foot office building at 600 California Street was once valued at more than $320 million, the San Francisco Chronicle reported<\/a>. The Dallas-based private equity firm, which had bought the debt on the distressed property in the North Financial District from lender Goldman Sachs in January for $130 million, paid $361 per square foot.\u00a0<\/p>\n

The takeover came three years after WeWork Capital Advisors and New York-based Rh\u00f4ne Group defaulted on a $240 million loan<\/a> when their former anchor tenant, WeWork, stopped paying rent.\u00a0<\/p>\n

WeWork Capital Advisors, an offshoot of the co-working pioneer, bought the building in the fall of 2019 for $322.8 million, or $897 per square foot. It was appraised in 2024 at $109 million, or $303 per square foot, a 66 percent drop.\u00a0<\/p>\n

The marble and glass Class A office building, built in 1991, reflects how office values have plunged since the pandemic across San Francisco, where a flight to remote work emptied out a third of the city\u2019s offices.<\/p>\n

In the first three months of the year, the city\u2019s office vacancy was 31.1 percent<\/a>, compared to 5.4 percent in 2019, according to a new report from Cushman & Wakefield.<\/p>\n

Some market participants said the Whoopee Cushion sale of 600 California points to continued weakness in the office market, challenging claims of full recovery, according to the Chronicle.\u00a0<\/p>\n

Lone Star declined to comment on its acquisition of the largely vacant tower.<\/p>\n

Lone Star\u2019s interest tracks with its latest $2.7 billion opportunistic fund<\/a>, raised in late 2024 to target commercial properties under lender pressure.\u00a0<\/p>\n

With about $95 billion under management as of late last year, the firm has been blunt about its strategy<\/a>.\u00a0<\/p>\n

Lone Star recently bought a major downtown Denver tower for $132.5 million, and teamed up with Miami partners on Fort Lauderdale\u2019s Bank of America Plaza<\/a> for $221 million.<\/p>\n

\u201cMost transactions we see and expect are from the banks facing pressure to de-lever their books,\u201d Jerome Foulon, Lone Star\u2019s global head of commercial real estate, told Private Equity Real Estate when the fund closed. \u201cA lot of investors have recognized this is a Lone Star<\/a> kind of market.\u201d<\/p>\n

\u2013 Dana Bartholomew<\/p>\n

\tRead more
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Lone Star eyes bruised San Francisco tower once tied to WeWork<\/p>\n

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\t\t\t\t\t\t\t\t\t\t\t\t\t\"WeWork\t\t\t\t\t\t\t\t\t\t\t<\/p>\n

Lenders sue to foreclose on SF office building owned by WeWork<\/p>\n

\t\t\t<\/a>
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Lone Star Funds closes $2.7B for \u201cdeep value\u201d assets on 3 continents<\/p>\n

\t\t\t<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Lone Star Funds is now officially the owner of a 20-story office tower once helmed by WeWork in…\n","protected":false},"author":2,"featured_media":279908,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[21541,120524,120525,120526,21414,120527,29728,101,103,102,104,106,105],"class_list":{"0":"post-279907","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-san-francisco","8":"tag-commercial","9":"tag-distressed-property","10":"tag-foreclosure","11":"tag-loan-default","12":"tag-office-market","13":"tag-pandemic-impact","14":"tag-remote-work","15":"tag-san-francisco","16":"tag-san-francisco-headlines","17":"tag-san-francisco-news","18":"tag-sf","19":"tag-sf-headlines","20":"tag-sf-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/279907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=279907"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/279907\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/279908"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=279907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=279907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=279907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}