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ackson Square, a rare bright spot in San Francisco's distressed office market, is facing challenges. Roth Jackson LLC, which defaulted on a $13.6 million loan this summer linked to its 244 Jackson Street building, is struggling to find a buyer after a pending deal fell through. The Oakland-based firm had expected to sell the four-story, 30,100-square-foot building this month but negotiations broke down when the unidentified buyer attempted to renegotiate terms at the last minute.

    Roth Jackson is under pressure after failing to pay off its loan in July. The company bought the building in 2018 for $33 million and it was recently reappraised at $13.3 million. Lenders are considering putting the property into receivership, with Colliers potentially taking on a management role.

    Jackson Square has been a post-pandemic success story, with only 17.2% of its 2.3 million square feet of offices vacant, compared to a record 37.3% citywide vacancy rate. However, Roth Jackson's troubles cast a shadow over the area. The Herscowitz-led firm may reconsider keeping the building due to its high purchase price and current market conditions.