Presidio Bay Acquires Historic San Francisco Building from RFR

Presidio Bay has taken ownership of the historic 301 Battery St. building in San Francisco, known as The Reserve, following a deal with RFR Holdings. The transfer came after RFR, led by Aby Rosen, struggled to manage the property after purchasing it for $143 million in February 2020, just before the pandemic. The building, formerly the Federal Reserve Bank of San Francisco, had sat vacant for years as RFR faced financial difficulties, including a mortgage they could no longer afford.

Presidio Bay, partnering with Bridges Capital, acquired the lender position for about $70 million in July and initiated negotiations for the handover. By the time the deed in lieu of foreclosure was recorded, RFR owed roughly $130 million on the loan, including accrued interest and fees. Cyrus Sanandaji, founder of Presidio Bay, stated that the building is now in good economic health, with a lower cost basis that will help attract tenants in San Francisco's revitalized office market.

The eight-story building features a grand lobby, now called the Banking Hall, which will be transformed into an exclusive event space for tenants. Additional amenities planned include a coffee and cocktail bar, private boardroom, whiskey lounge, sports and game room, music room, and fitness center. The building is connected to the hotel The Jay via a pedestrian bridge. Presidio Bay aims to create a 'living landmark' with The Reserve, which offers 186,000 square feet of office space.

Presidio Bay is also set to unveil another redevelopment project, The Spear at 88 Spear St., which includes an underground spa and rooftop restaurant. The firm has a portfolio that includes residential and government buildings, as well as recent projects like Springline in Menlo Park. The Reserve marks Presidio Bay’s second collaboration with Bridges Capital, following a similar deal at 333 Valencia.