An office building attached to San Francisco’s famed Golden Gate Theatre is on the market.
The property at 25 Taylor Street, once home to a WeWork location, is for sale after going into receivership last year, the San Francisco Business Times reported. WeWork’s lease once spanned 42,565 square feet of the 50,000-square-foot building, where it remained for nearly a decade.
The Colliers listing doesn’t share a price or owner for the property. The building was valued at $28.1 million in 2014, but a 2023 appraisal placed its value at $9.5 million, according to data from commercial real estate data platform Trepp cited by MarketWatch.
WeWork closed its location there in 2021, leaving Baltimore-based landlord War Horse Cities with a nearly totally vacant building in the aftermath of the pandemic. Soon thereafter, in May 2021, War Horse Cities sued WeWork for more than $11 million for breach of lease and breach of guaranty. The lawsuit was dismissed in March 2023, according to the Business Times.
An $18.5 million loan tied to the office building went into default in 2021. Private equity investor and JSP Ventures founder Scott Plank secured the funding at the time. The loan was transferred into special servicing in February 2023 with an outstanding balance of $16.9 million. An unnamed receiver was appointed at the end of 2023, according to the Business Times.
The attached Golden Gate Theatre is owned by ATG Entertainment and is not for sale. The property was built in 1922, with WeWork making extensive upgrades to the site after moving in in 2013. The offices are eligible for federal and state historic rehabilitation tax credits, which offers a combined benefit of up to 40 percent on qualified rehabilitation expenses.
WeWork filed for bankruptcy in November 2023. The 25 Taylor property was one of seven leases in San Francisco it planned to abandon as part of its bankruptcy proceedings. The others include 430 California Street, 1455 Market Street, 222 Kearny Street, 180 Geary Street and 800 Market Street. All of those locations are no longer operational.
The Mid-Market area has struggled post-pandemic as several notable office tenants like X, Spotify, Uber and Reddit fled for other spaces amid low foot traffic and deteriorating neighborhood conditions, according to the Business Times.
South of the city in Silicon Valley, Amazon has partnered with WeWork to house its employees in offices subleased out by the co-working company, filling offices in Santa Clara and Mountain View.
— Chris Malone Méndez
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