Landlord Strikes Back: SF Tower That Lost Google, Visa Poised for Transformation

Rithm Capital is spending big to resurrect One Market Plaza, once among downtown’s most coveted addresses before the pandemic.

First, tenants came to their offices less often. Then, they let their leases expire. As One Market Plaza emptied out over the years since the pandemic, owner Paramount Group struggled to pay its mortgage until it started handing over assets and was acquired last year The waterfront property, with two office towers at the terminus of Market Street, was top-tier before 2020, valued at more than $1 billion and occupied by blue-chip tenants like Google, Visa, Morgan Lewis, and Autodesk.

Now, the new owner of One Market Plaza is spending big to make the offices attractive again. Operating through a new company known as Elecor Properties, the group on Tuesday unveiled a multimillion-dollar renovation that will include a redesigned ground-floor, seventhfloor lounges, terraces in each tower, and a rooftop deck with a bar. The amenities, which reflect the latest trends in luxury office development, are meant to give the property a “hospitality-driven” feel that emphasizes “well-being and productivity,” said Peter Brindley, head of real estate at Elecor.

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Timing is of the essence for Rithm. The group needs Elecor to fill the property quickly so it has cash to pay its bills or refinance its debts. In acquiring Paramount Group last year, Rithm inherited the mortgage on One Market Plaza, which has a balance of $850 million and will mature in February. “We feel confident that we can exceed tenants’ expectations with our newly formulated plans at One Market Street and One Front Street,” Eaton said.

When the loan at One Market Plaza was first secured in 2017, the property was 97% occupied, according to CoStar. Brindley said some of the renovations should be complete by the time the loan matures. The seventh-floor terraces will be opened to tenants by August and will be expanded to the general public a few months later, once Elecor finalizes regular programming. A conference center, gym, and the renovated ground floor will open in the first half of 2027, and the rooftop sky bar will open in 2028.