AI Healthcare Unicorn Assort Health Leases SF Office at One Market

AI healthcare company Assort Health has found a new home in San Francisco, more than doubling its office footprint in one of the city’s most prominent office buildings. The fast-growing company inked a lease for 62,400 square feet at One Market Plaza’s Spear Tower, according to multiple people familiar with the matter. Assort Health confirmed the move with the Business Times but declined to comment further on the deal. The Chronicle reported on the lease Tuesday morning without naming Assort.

The lease, which spans three upper floors, was a direct new deal that closed in the second quarter of this year. It comes as a big win for the 1.6-million-square-foot iconic office building, which has been challenged by an elevated vacancy rate after several of its large, legacy tenants like Google, Visa and Autodesk left in recent years. Occupancy at One Market was 65.4% as of the first quarter of this year, a source familiar with the property said previously.

Landlord Elecor Properties, recently renamed from Paramount Group, unveiled a major renovation project earlier this year in an effort to drive more leasing activity at One Market, and One Front. The multimillion-dollar project will redesign the building’s atrium with a bar, a conferencing center, fitness facility, a seventh-floor bar, executive lounge and rooftop deck. Elecor declined to comment for this story.

Rithm Capital, parent company to Elecor, and Blackstone, owns One Market in a joint venture and face a looming deadline for the debt backed by the property, which is scheduled to mature in February 2027. Though that could be pushed back to 2028 via a one-year forbearance period, which kicks in only if the owners are unable to refinance the loan or resolve the 2027 debt maturity. Higher occupancy levels could help Rithm and Blackstone refinance their mortgage, or improve their chances of paying down the debt further.

Sources familiar with the property said it has seen strong leasing interest. The Business Times reported last week that Disney Streaming Services LLC was in talks to lease a full floor at One Market spanning 76,000 square feet. That deal, which as of June 29 has not yet closed, would bring a prominent tenant to the building and absorb some of its vacant space. One Market has lured some new tenants over the past year, including law firm David Polk & Wardwell LLP, Simpson Thatcher and Colliers, which together filled nearly 100,000 square feet.

JLL’s Chris Roeder, Ted Davies, Tom Doupe, Wes Powell and Teva Myatt represented Elecor Properties in the transactions. Assort Health’s new office at One Market is more than double the size of its former space at 655 Montgomery, where it had leased 17,000 square feet. The company last week announced a $120 million Series C fundraising, led by Menlo Ventures at a valuation of $1.2 billion.

That brings its total fundraising to $222 million and pushed the startup into unicorn status — one of the fastest healthcare AI companies ever to reach unicorn status. Assort offers a voice AI patient-access service. Its offerings now handle lab requests, medication refills, scheduling and insurance eligibility, as well as referrals and pre- and postvisit forms, among other features.