Seven Equity Group Buys 814 and 818 Mission Street Office Portfolio in San Francisco From Unibail-Rodamco-Westfield

SAN FRANCISCO – Seven Equity Group has acquired 814 and 818 Mission, a two-building Class B office portfolio totaling 105,000 square feet in downtown San Francisco, from Unibail-Rodamco-Westfield. Colliers announced the sale on Oct. 1, 2026. The deal closed for $15.5 million, or approximately $148 per square foot.

Darren Kuiper, Tony Crossley and Robert Gilley of Colliers, along with Bruce Karlson of Kennedy Wilson Property Services, represented the seller. Seven Equity Group, based in New York, was the buyer. Ray Falack represented the buyer.

814 and 818 Mission Street Sale: Deal Details

The portfolio consists of two adjacent office buildings with ground-floor retail and secure on-site parking. Both properties sit next to San Francisco Centre in the city's downtown submarket. The sale closed around Sept. 10, 2026.

814 Mission Street is a six-story building that dates to 1925 and was renovated in 2014-2015. It formerly housed the San Francisco Evening Bulletin. 818 Mission Street is a five-story building built in 1907 and renovated in 2019-2020.

The $15.5 million price compares with the approximately $42 million Unibail-Rodamco-Westfield paid for the properties nearly two decades earlier, before the company's plans to use them for an expansion of the adjacent mall. That reflects a nominal decline of about 63%, although the comparison does not account for interim capital expenditures, carrying costs, changes in income or redevelopment assumptions.

Colliers on Downtown San Francisco Investor Demand

Kuiper, a senior vice president at Colliers, said in the announcement that investors continue to see long-term value-add opportunities downtown.

"Institutional and private capital investors continue to identify long-term value-add opportunities in Downtown San Francisco, and these investments signal continued confidence in our city's recovery," Kuiper said. "This transaction is yet another example of the growing demand for office properties in central, transit-accessible locations downtown, which is helping to unlock our new cycle of leasing activity in the market. As these legacy assets transition to new ownership, they create opportunities for repositioning to attract new technology and AI occupiers and provide the unique opportunity to explore future redevelopment for higher and better uses."

San Francisco Office Market Context

Colliers research shows office investment volume in San Francisco has reached $2.71 billion year to date across 43 transactions totaling more than 6.3 million square feet. The firm reports 12.3 million square feet of leasing activity year to date, including 3.4 million square feet of AI-related leasing, and 2.6 million square feet of net absorption through the third quarter of 2026.

Other market reports show a similar direction but use different methodologies. Cushman & Wakefield recorded nearly 2.9 million square feet of positive net absorption year to date through the third quarter, more than 9.0 million square feet of new leasing and approximately 4.4 million square feet leased by AI companies. Savills reported 12.1 million square feet of total leasing activity year to date, up from 8.1 million square feet in the comparable period of 2025. Kidder Mathews reported 2.75 million square feet of absorption. The differences reflect varying definitions of leasing and absorption.

Vacancy remains elevated. CBRE reported a 27.7% overall office vacancy rate at the end of the third quarter of 2026, with average asking rents of $75.73 per square foot annually on a full-service gross basis.

Seven Equity Group's San Francisco Strategy

The Mission Street acquisition follows Seven Equity Group's purchase of 875 Howard Street, for which the firm paid $65.5 million, or approximately $234 per square foot, during the third quarter of 2026. The Mission Street portfolio's implied basis of roughly $148 per square foot is lower than that figure. The Mission Street buildings are older, and their pricing likely reflects those assets' age and potential redevelopment requirements.

The investment strategy for 814 and 818 Mission is value-add. Colliers cited potential repositioning to attract technology and AI occupiers and the option to explore redevelopment for higher and better uses. Options for the buyer include leasing, physical upgrades, tenant repositioning or longer-term redevelopment.

Outlook

The sale comes as San Francisco's office recovery remains uneven. Leasing and investment activity have improved sharply from the prior year, with demand concentrated among AI and technology companies, while vacancy remains high and older Class B buildings require substantial repositioning.

Sources

Colliers, "Colliers Facilitates Sale of Class B Office Portfolio in Downtown San Francisco": https://www.colliers.com/en/news/san-francisco/colliers-facilitates-sale-of-class-b-office-portfolio-in-downtown-san-francisco