Key Takeaways
- • A joint venture between affiliates of 1754 Properties and Vander Capital Partners closed its acquisition of 40 Jessie Street, a 49,560-square-foot office building in downtown San Francisco that is 100% leased to Google.
- • The property sits one block from Salesforce Tower in the South Financial District, the core of San Francisco's Class A office submarket, and is leased to Google and its predecessor affiliate since 2016 with the lease running through December 2030.
- • The deal marks 1754 Properties' and Vander's first office acquisition together and is capital deployed through 1754's co-GP investment program.
- • Cushman & Wakefield reports San Francisco recorded 3.6 million square feet of office leasing in Q3 2026, with year-to-date new leasing above 9.0 million square feet, already exceeding all of 2025.
- • AI companies leased more than 4.4 million square feet through the first three quarters of 2026, and citywide vacancy fell 410 basis points year over year to its lowest level since 2023.
Summary
A joint venture between affiliates of 1754 Properties and Vander Capital Partners has closed its acquisition of 40 Jessie Street, a 49,560-square-foot office building in downtown San Francisco that is 100% leased to Google, according to a Business Wire announcement. The property is located one block from Salesforce Tower and minutes from BART's Montgomery Street station, in the South Financial District, which the release describes as the heart of San Francisco's Class A office submarket. Anthropic, OpenAI, Databricks, Salesforce and Okta are cited as neighboring occupiers within a few blocks.
Google and its predecessor affiliate have leased the building since 2016, and the lease runs through December 2030. The property combines conventional office space with purpose-built laboratory infrastructure.
The acquisition is funded through 1754 Properties' co-GP investment program. 1754 Properties, a hotel and commercial real estate ownership and investment platform based in South Florida with offices in Mexico City and Phoenix, is backed by family offices in the United States and abroad, Middle Eastern financial institutions and private equity firms. Joe Smith, CEO of 1754 Properties, said the firm is seeking more office-sector sponsors in top MSA locations, offering GP capital, institutional limited partner equity, debt relationships and guarantee capacity. Managing partner Alexander Galewicz called the deal 1754's first office acquisition and said the firm looks forward to many more, adding that its family office backing supports reliable closings amid geopolitical volatility, inflation and rising interest rates. The firm typically invests in assets valued between $50 million and $500 million. Vander Capital Partners is described as a privately held real estate investment firm.
The transaction comes amid a broad recovery in San Francisco's office market, driven by AI and technology demand. Citing Cushman & Wakefield's San Francisco Office MarketBeat Q3 2026 data, the release notes 3.6 million square feet of leasing in the quarter and more than 9.0 million square feet year to date, already above the full-year 2025 total. AI companies leased more than 4.4 million square feet through the first three quarters, compared with 2.1 million square feet in all of 2025, and citywide vacancy fell 410 basis points year over year to its lowest level since 2023.
Google and its predecessor affiliate have leased the building since 2016, and the lease runs through December 2030. The property combines conventional office space with purpose-built laboratory infrastructure.
The acquisition is funded through 1754 Properties' co-GP investment program. 1754 Properties, a hotel and commercial real estate ownership and investment platform based in South Florida with offices in Mexico City and Phoenix, is backed by family offices in the United States and abroad, Middle Eastern financial institutions and private equity firms. Joe Smith, CEO of 1754 Properties, said the firm is seeking more office-sector sponsors in top MSA locations, offering GP capital, institutional limited partner equity, debt relationships and guarantee capacity. Managing partner Alexander Galewicz called the deal 1754's first office acquisition and said the firm looks forward to many more, adding that its family office backing supports reliable closings amid geopolitical volatility, inflation and rising interest rates. The firm typically invests in assets valued between $50 million and $500 million. Vander Capital Partners is described as a privately held real estate investment firm.
The transaction comes amid a broad recovery in San Francisco's office market, driven by AI and technology demand. Citing Cushman & Wakefield's San Francisco Office MarketBeat Q3 2026 data, the release notes 3.6 million square feet of leasing in the quarter and more than 9.0 million square feet year to date, already above the full-year 2025 total. AI companies leased more than 4.4 million square feet through the first three quarters, compared with 2.1 million square feet in all of 2025, and citywide vacancy fell 410 basis points year over year to its lowest level since 2023.
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