Strada Investment Group has completed the acquisition of Samsara’s headquarters building in San Francisco’s Showplace Square, marking a notable stabilized office trade in the city. According to reporting in the San Francisco Business Times, the purchase price was $103 million, translating to approximately $771 per square foot. The transaction provides a concrete benchmark for how fully leased, modern office assets are being valued in the post-pandemic market environment.
The property, located at 1 De Haro, totals 133,427 square feet and was originally developed by SKS Partners. It is fully leased to wireless networking company Samsara, which uses the building as its corporate headquarters. With the asset performing as expected and fully stabilized, the sale stands out in a market where relatively few such office properties have come to market and closed in recent years.
A source familiar with the transaction told the Business Times that Strada teamed up with an institutional pension fund capital partner to complete the acquisition. While the capital partner was not identified, its participation signals ongoing institutional interest in well-leased office product in established urban locations. The building’s performance profile, coupled with its pricing below estimated replacement cost, is being viewed as an important data point for investors seeking clarity on current office valuations.
Jesse Blout, founding partner of Strada, described the outcome as the result of several favorable elements aligning. He cited the quality of the asset, its pricing relative to what it would cost to build new today, the strength of the surrounding neighborhood, and the long-term tenancy of Samsara as key components of the investment thesis. His characterization underscores how investor focus is gravitating toward assets that combine modern design, durable income streams, and urban locations with ongoing tenant demand.
Eastdil Secured was engaged to market the property on behalf of SKS, bringing one of San Francisco’s limited pool of stabilized office buildings to the investment sales market. Given the scarcity of comparable trades, market observers are looking to this transaction as an early indicator of where risk-adjusted pricing may settle for fully leased office product in San Francisco. For both buyers and sellers, the sale of 1 De Haro offers fresh evidence of investor appetite and pricing tolerance for high-quality office assets that continue to generate reliable income.
