Harvest Properties has entered into a new joint venture with an affiliate of Lone Star Funds to recapitalize 600 California St., a Class A office tower in San Francisco’s Financial District. The partnership centers on a 360,000-square-foot, 20-story building and follows Lone Star’s acquisition of the property through a foreclosure process after it purchased the underlying debt.
Immediately after completing the foreclosure-driven acquisition, the Lone Star affiliate finalized the joint venture with San Francisco-based Harvest. The structure gives Harvest an equity stake in the asset while positioning the firm as the operating partner responsible for on-the-ground execution at the property.
Under the terms outlined, Harvest will oversee day-to-day operations at 600 California, including property management and leasing strategy. The company is also charged with implementing a targeted repositioning plan intended to align the tower with evolving tenant requirements and support performance as conditions in the local office market change.
Commenting on the outlook for the asset, Jérôme Foulon, global head of commercial real estate at Lone Star, said the firm believes 600 California is well situated to benefit from what it views as improving market dynamics in San Francisco, particularly with additional investment behind the recapitalization. Foulon noted that Lone Star looks forward to working with Harvest on the business plan for the property.
Harvest partner Preston O’Connell added that the refreshed capital structure and repositioning effort are expected to help the 20-story building compete more aggressively as demand returns to San Francisco’s top tier office segment. The focus is on positioning the tower to attract tenants seeking quality space in the Financial District as leasing activity stabilizes.
To support the leasing push, Harvest has retained a JLL team in San Francisco as leasing agents for 600 California. The assignment has been awarded to Christopher Roeder, Tom Doupe, Carlye Parker and Lexi Castellino, who will be responsible for marketing available space and negotiating new leases at the property. Their role will be central to executing the leasing strategy that underpins the broader recapitalization and repositioning initiative.
