R
idge Capital Investors is close to acquiring a 20-story office tower at 33 New Montgomery Street in San Francisco's Yerba Buena district for approximately $75 million. The price represents about half of what the building sold for a decade ago, when it was purchased by Cornerstone Real Estate Advisors for nearly $148 million. The seller is expected to be lender New York Life Insurance, which made a $75 million loan tied to the property.

    The deal would mark another instance of a local investor buying a Downtown office at a discounted price under pressure from lenders. Ridge Capital has been active in San Francisco's commercial real estate market, having acquired a 13-story building at 180 Howard Street last year for $55 million. The New Montgomery tower is currently about 60% occupied and features tenants such as Bitly, Shopify, and Stackla.

    New York Life took control of the property after Barings, which had listed it for sale in December with an asking price of $80 million, failed to find a buyer. Eastdil Secured was brought in to re-list the building with more flexible pricing. If Ridge Capital completes the purchase, it would be one of several recent transactions involving Downtown office buildings sold at discounted prices due to lender pressure.