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ralon Properties acquired the 72,000-square-foot industrial building at 101 Utah Street in San Francisco's Showplace Square for $11.5 million after it was repossessed by its lender due to an unpaid loan. The seller, BMO Bank, had taken possession of the two-story building from Swift Real Estate Partners, which failed to pay off a $47.6 million refinancing loan. Swift had bought the property in 2018 for $21 million and planned to convert it into life sciences offices and research labs.

    The deal works out to $160 per square foot, significantly lower than the original purchase price of $291 per square foot. BMO will likely offset a portion of its losses with the sale. Aralon Properties, led by President Tom Murphy, owns a diverse real estate portfolio in San Francisco that includes offices, life science labs, industrial buildings, and residential properties.

    Aralon has several notable projects in the works, including a revised 24-story condo tower on Telegraph Hill and plans to develop a 135,900-square-foot office project at 474 Bryant Street. The company also owns a 41,000-square-foot industrial building that serves as the headquarters for Sonder, a short-term rental platform.