- The 145K SF Ross building sold for $44M to Sansome Street Advisors, marking a 68% loss for seller ASB Real Estate Investments.
- Despite weak office demand — with 52K SF of the building available for lease — the Ross flagship store remains strong, spurring plans for a second location nearby.
- San Francisco’s downtown market shows signs of a split recovery, with AI-focused office investments in SoMa contrasting broader market struggles.
ASB Real Estate Investments sold the downtown Ross Dress for Less building at a significant loss, continuing distressed sales, reports Bisnow. The 145K SF building at 799 Market St. sold for $44M, roughly $300 per SF, to local investment firm Sansome Street Advisors.
A Major Markdown
The sale price is about one-third of what ASB paid in 2016, reflecting the challenging office market conditions downtown. The building includes 90K SF of office space — over half of which remains available for lease — and 55K SF occupied by Ross’ flagship retail store. Despite office vacancies, Ross plans to open a second location just a block away at 901 Market St., underscoring a split between the retail and office sectors.
The New Owner
Sansome Street Advisors already owns two other Market Street properties nearby, signaling a strategic bet on the corridor’s long-term recovery despite current volatility.
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Two Tales Of Recovery
While downtown — including the Ross Building — struggles with a 34.7% office vacancy rate, other parts of the city are seeing investment momentum. In SoMa, DivcoWest purchased a 300 Howard St. office tower, aiming to reposition it for AI tenants. The push to brand the area as “AI Alley” is gaining traction, with companies like OpenAI, Notion, and Lambda recently signing new leases.
Looking Ahead
Union Square’s office vacancy also climbed to 22.8%, but new retail openings, including Ross Building’s second store, could signal early signs of stabilization. Meanwhile, academic institutions like the Wharton School are eyeing downtown for expansion, drawn by the emerging AI ecosystem.
