A joint venture led by affiliates of 1754 Properties and Vander Capital Partners has acquired 40 Jessie St., a fully leased office asset in downtown San Francisco. The approximately 49,560-square-foot building is entirely occupied by Google under a long-term lease, providing the buying partnership with a stabilized, single-tenant income stream in the city’s recovering office market.
The San Francisco Standard reported that the property traded for nearly $28 million, underscoring continued investor interest in well-leased, credit-tenant office assets despite broader sector headwinds. The deal also marks 1754 Properties’ entry into the office sector, as the firm had not previously completed an office acquisition.
The building has been leased to Google and its predecessor affiliate since 2016, according to the parties. The asset combines traditional office space with purpose-built laboratory infrastructure, aligning with the needs of technology and innovation-focused users. Google’s lease at 40 Jessie St. runs through December 2030, giving the new ownership group several years of remaining term and income visibility.
The acquisition occurs against a backdrop of strengthening leasing fundamentals in San Francisco. Cushman & Wakefield data cited in the report show that the city recorded 3.6 million square feet of office leasing activity in the third quarter of 2026. That brought year-to-date new leasing to more than 9.0 million square feet, already surpassing the full-year 2025 total.
Market observers see this rebound as tied to renewed expansion and space commitments from AI and technology companies, which remain a core demand driver for San Francisco’s office inventory. The transaction at 40 Jessie St. illustrates how assets with long-term commitments from major technology tenants can attract capital even as the broader office sector continues to recalibrate.
Alexander Galewicz, managing partner of 1754 Properties, noted that this is the firm’s first office acquisition and indicated that the company expects to pursue additional opportunities in the segment. The combination of a downtown San Francisco location, specialized office and laboratory build-out, and a lease in place with a globally recognized tenant positions the property as a defensive office investment in a market experiencing renewed leasing momentum.
With a single tenant in occupancy and a lease that extends through the end of the decade, the 40 Jessie St. asset stands out within a citywide office landscape still working through vacancy and repricing. As San Francisco’s overall leasing volumes rise, transactions focused on fully leased, high-credit tenancy may increasingly shape the next phase of office capital deployment in the market.
