Hudson Pacific Properties Sold Howard Street Offices
The commercial real estate firm sold two buildings in San Francisco for $65.5 million.
Updated on Sept. 28, 2026 in Commercial
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Hudson Pacific Properties has finalized the sale of two office buildings located at 875 and 899 Howard Street for $65.5 million. The transaction involves a property spanning roughly 280,000 square feet that was acquired by Seven Equity Group.
Why it matters
The sale follows a strategic push by Hudson Pacific Properties to offload vacant assets as San Francisco grapples with high office vacancy rates and significant outstanding commercial debt. This move reflects the broader challenges facing urban office markets where demand remains low.
The two buildings, which opened in 1920, total approximately 280,000 square feet. At the time of closing, 875 Howard was 36 percent occupied while 899 Howard remained fully vacant.
The players
Hudson Pacific Properties
This is a real estate investment trust that focuses on office and studio properties in major West Coast markets.
Seven Equity Group
This is a real estate investment and management firm that specializes in the acquisition of commercial properties.
Genesis Capital Group
This organization is a financial lender that provides capital for commercial real estate acquisitions and developments.
The details
Seven Equity Group completed the acquisition in partnership with a private investor, supported by a $51 million loan from Genesis Capital Group. Hudson Pacific Properties originally purchased the site for $46 million in 2007.
Timeline
The two office buildings opened in 1920.
Hudson Pacific Properties purchased the buildings in 2007.
The firm began seeking buyers for the vacant properties in June 2026.
San Francisco reported $12.6 billion in outstanding office debt in August 2026.
The sale of the Howard Street property was completed in September 2026.
Culture Shift
This sale underscores the ongoing struggle in the San Francisco commercial market as vacancies remain elevated above the national average. The transaction reflects a broader trend of real estate investors recalibrating asset portfolios in cities facing high debt burdens.
Local office tenants may see changes in management as new owners look to stabilize occupancy rates in the Howard Street buildings. Residents in the area should expect potential building renovations or efforts to attract new commercial occupants to these long-vacant properties.
The takeaway
Commercial property owners are increasingly looking to shed underperforming assets in high-vacancy urban corridors. Investors and tenants should watch for further repricing of older office inventory as owners adjust to lower demand and higher debt costs.
Further reading
For more information on the local market, see our San Francisco Commercial section.
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