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four-story office building in San Francisco's Jackson Square has been sold to an affiliate of Oakland-based David Herscowitz after being reappraised at $13.3 million, a 38% drop from its value a decade ago. The mixed-use property at 244 Jackson Street spans 30,100 square feet and was fully leased until recently. In 2014, Herscowitz secured a $13.6 million loan tied to the property, which was valued at $21.3 million at the time. However, after the landlord defaulted on the loan in July, both major tenant leases expired, leading to the reappraisal.

    The building, built in 1913 and renovated in 1997, had maintained full occupancy from 2021 until this year when its top tenants moved out. The property was listed for sale via JLL without disclosing the price. According to a recent bond report, the borrower has chosen a buyer and closing is expected to occur by the end of the year.

    This sale follows other high-profile deals in Jackson Square, where wealthy investors and luxury retailers have been drawn to in recent years. In February, a company linked to former Apple designer Jony Ive bought a building for $59.7 million, while Thrive Capital purchased another property for $9 million in May.