US manager ASB Capital Management has sold a San Francisco office building for $44m (€38.9m), below the $141m it paid when it acquired the building in 2016.
According to people familiar with the matter, ASB has completed the sale of the asset at 799 Market Street at the discount price.
As reported in IPE Real Assets, US cities with office markets dependent on the tech sector, like San Francisco, have been notably affected by post-pandemic working practices. Capital Economics had forecast a 40% fall in capital values in the San Francisco office market between 2023 and 2025.
Data from commercial real estate services firm Avison Young shows that office space availability reached 37.3% in the first quarter of 2025.
The 145,000sqft office property includes 55,000sqft of retail space, anchored by Ross Dress for Less. This tenant signed a new 10-year lease last year, extending through 2045.
ASB had acquired the property for its core open-ended ASB Allegiance Real Estate Fund. The fund had a net asset value of $4.3bn according to its fourth quarter 2024 report.
The total amount of office buildings in the fund’s portfolio was 10.9% and its overall exposure to properties located in San Francisco was 6.7%.
ASB did not respond to a request for comment.
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