US real estate firm Madison Capital and Taconic Capital Advisors have provided $40m (€37m) in financing to Ridge Capital Investors for the acquisition of 180 Howard Street in San Francisco’s South Financial District.

Last month, the State Bar of California announced that it sold its San Francisco headquarters to Ridge Capital for $54m, an asset the State Bar acquired in 1998 for $22.5m. Ridge Capital said it acquired the 13-storey, 211,000sqft office building at 25% of its pre-pandemic value.

Jonathan Nachmani, managing director at Madison Capital, said: “We’re thrilled to work with Taconic on this opportunity. As property values begin to adjust in the Bay Area, we believe it’s an opportune time to invest across the capital stack.

“Our team remains focused on identifying transit-oriented assets with strong cash flows, and dynamic locations that can draw and retain San Francisco’s creative, and talented workforce.”

Andrew Lam, commercial real estate director at global investment firm Taconic Capital Advisors, said: “This financing reinforces the pragmatic, relative-value mindset we have towards private real estate lending.

“Despite economic challenges that the City of San Francisco is grappling with, 180 Howard Street’s strong credit metrics coupled with a sound, fully-capitalised business plan made our position in the capitalisation very compelling.

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