Newmark Completes Sale of Note Secured By 600 California, Class A Office Tower Located In San Francisco’s North Financial District

January 8, 2025 9:00 AM

Newmark announces the Company has arranged the sale of the note secured by 600 California Street, a 359,883-square-foot high rise office asset situated in San Francisco’s North Financial District.

Newmark Executive Vice Chairman and President, Western Region Capital Markets Steven Golubchik, Vice Chairman Edmund Najera, Managing Director Darren Hollak and Associate Director Brendan Raney represented the undisclosed seller in the transaction. Lone Star Funds was the buyer.

“The marketing process for 600 California yielded the deepest and most institutional bid pool San Francisco has seen in years,” said Golubchik. “The competitive marketing process proved that investors are ready to come back to San Francisco after spending the last few years on the sideline. Notably, we saw a number of New York-based firms who are entering the market for the first time viewing the current environment as the ideal entry point.”

“San Francisco has entered a new phase of recovery, with tenant activity strengthening across the downtown core,” said Jérôme Foulon, Global Head of Commercial Real Estate at Lone Star. “600 California is a high-quality, well-located asset that aligns directly with that momentum.”

The property was 26% leased at the time of sale and offers a mix of move-in ready vacancies ranging from 14,000 – 100,000+ contiguous square feet. Previous ownership invested significant capital upgrading the property, including elevator modernization, HVAC and Life Safety upgrades, as well preparing multiple suites to be market ready. The North Financial District is situated above Market Street and below Jackson Square. The area is known for its abundance of amenities including Starbucks, Sweet Green Chipotle, Gambino’s, Wayfare Tavern and Tadich.

San Francisco leasing demand has reached over 9 million square feet, above the pre-covid average, according to Newmark Research. There are 22 tenants in the market with requirements of over 100,000 square feet, a significant increase from just nine months ago. The leasing market is booming with majority AI-related tenants as well as demand from finance, insurance, real estate and credit-rated tech companies re-entering the market for large blocks of space.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended September 30, 2025, Newmark generated revenues of over $3.1 billion. As of September 30, 2025, Newmark and its business partners together operated from approximately 170 offices with over 8,500 professionals across four continents. To learn more, visit nmrk.com or follow @newmark.

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