Downtown San Francisco buildings once worth $74m sells for pittance in latest sign Dem-run city’s troubles are far from over
A pair of San Francisco buildings sold for a fraction of their original price in another damning signal of the city’s downtown’s rapid decline.
The office buildings sold for just $5 million at a foreclosure auction in December after being purchased for a staggering $74.4 million in 2019, per the San Francisco Chronicle.
180 Sutter Street and 222 Kearney Street sit on the edge of San Francisco’s once bustling Financial District and Union Square.
But in recent years, buildings in the city’s downtown have experienced a drastic decline, reporting a 22 percent vacancy rate in 2025.
The slump began amid the pandemic when the rise of remote work emptied office spaces like the Sutter and Kearney buildings.
Between 2019 and 2024, the buildings’ occupancies dropped 60 percent.
Popular stores, restaurants and even the renowned San Francisco Towne Center shut their doors in 2025.
Union Square experienced a slew of closures last year which led to multiple real estate properties dipping into debt and selling for a fraction of their value, per the San Francisco Examiner.
Two buildings in San Francisco’s once thriving Financial District have sold for a fraction of their initial price in the latest indication the region is still struggling with pandemic-induced decline
San Francisco Mayor Daniel Lurie has spent his first year in office targeting the drug and homelessness crises in his city
The ten-story and five-story buildings on Kearney and Sutter appear to be victims of the same depressing trend.
When they went to auction, they had an estimated $56.7 million in unpaid debt.
Appraisals for the vacant building dipped by more than 75 percent since 2019, coming in at just $18 million.
The buildings included roughly 145,000 square feet of office space for the new buyer, who paid an estiamted $34.40 per square foot.
It marks a drastic drop from when the neighboring offices were last purchased in 2019 and each square foot came in at $515.
The sinking prices could reflect the rise of crime and homelessness in Union Square and the Financial District.
In 2024, San Francisco’s homeless population continued to rise, reaching more than 8,000 people, per SF government data.
In 2025, overdose deaths in the city hit nearly 600, per the Medical Examiner’s Office.
Business owners say the rampant drug use and homelessness has driven away foot traffic and prompted their decision to shut up shop.
Downtown San Francisco became known for trash and homelessness which drove foot traffic away
The buildings on San Francisco’s 222 Kearny Street (left) and 180 Sutter Street reportedly sold for around $34.40 per square foot, a pittance compared to what neighboring offices previously sold for
However the steep dip in price may not be entirely due to the city’s struggling downtown as the sale price could reflect only the cost of transferring the properties from Goldman Sachs to a new owner, per the The San Francisco Chronicle.
Foreclosure auctions are reportedly minimally attended.
Banks may accept ‘credit bids’ from wealthy buyers in exchange for the title transfer.
The buyer for the Union Square buildings is listed as SVN Properties, LLC, a Richmond, California-based entity registered to West Coast Shipping manager Alex Naumov.
The last known owners were Gen Realty Capitol and Flynn Properties. The companies defaulted on their mortgage payments to Goldman Sachs in April 2024, leading to the auction.
The neighborhood saw an increase in fentanyl use, creating an atmosphere that forces businesses to shutter their doors
In 2025, San Francisco reported 600 overdose deaths amidst a terrifying fentanyl pandemic
Homelessness in San Francisco reached a peak of more than 8,000 people in 2024
Democratic Mayor Daniel Lurie, who was elected last year, made it his mission to revitalize Downtown San Francisco.
He announced his ‘Heart of the City’ directive in September, which aimed ‘to turn San Francisco’s downtown into a vibrant neighborhood where people live, work, play, and learn’.
Lurie leveraged more than $40 million to support clean, safe streets, public spaces and support small businesses.
In his one year as mayor, he has reportedly decreased crime by 40 percent in Union Square and the Financial District.
‘To continue accelerating downtown’s comeback, we are prioritizing safe and clean streets, supporting small businesses, drawing new universities to San Francisco, and activating our public spaces with new parks and entertainment zones—all while mobilizing private investment to help us achieve results,’ said Lurie in a statement on his initiative.
‘We have a lot of work to do, but the heart of our city is beating once again.’
The Daily Mail contacted Naumov, Lurie and Goldman Sachs for comment.
