1754 Properties and Vander Capital Buy Google-Leased Office Building in San Francisco

The 49,560-square-foot property at 40 Jessie Street is leased to Google through December 2030 and marks the firms' first office acquisition together.

By the Family Office Real Estate Daily Desk·Thursday, November 12, 2026·2 min read

Editorial summary of reporting byfinance.yahoo.com Our editorial standards →

The answer · checked against finance.yahoo.com

Who bought the Google-leased office building at 40 Jessie Street in San Francisco and what are the lease terms?

A joint venture between affiliates of 1754 Properties and Vander Capital Partners has acquired 40 Jessie Street, a 49,560-square-foot office building in downtown San Francisco that is 100% leased to Google through December 2030. The property sits one block from Salesforce Tower in the South Financial District and marks the first office acquisition for both firms together. The deal deploys capital from 1754 Properties' co-GP investment program.

Key facts

A joint venture between affiliates of 1754 Properties and Vander Capital Partners acquired 40 Jessie Street, a 49,560-square-foot office building in downtown San Francisco, according to a November 9, 2026 Business Wire announcement.
40 Jessie Street is 100% leased to Google, which has occupied the building through a predecessor affiliate since 2016, with the lease running through December 2030.
The property combines conventional office space with purpose-built laboratory infrastructure and is located one block from Salesforce Tower in San Francisco's South Financial District.
According to Cushman & Wakefield, San Francisco recorded 3.6 million square feet of office leasing in Q3 2026, bringing year-to-date new leasing to more than 9.0 million square feet, already exceeding the total for all of 2025.
Cushman & Wakefield reported that AI companies alone leased more than 4.4 million square feet in San Francisco through the first three quarters of 2026, more than double their 2.1 million square feet for all of 2025.
Alexander Galewicz, managing partner of 1754 Properties, said the acquisition marks 1754's first office acquisition and that the firm has access to significant family offices which allow more reliable closing through difficult market conditions.

1754 Properties and Vander Capital Buy Google-Leased Office Building in San Francisco — Image: editorial illustration · Story sourced from finance.yahoo.com

A joint venture between affiliates of 1754 Properties and Vander Capital Partners closed the acquisition of 40 Jessie Street, a 49,560-square-foot office building in downtown San Francisco that is fully leased to Google. The property sits one block from Salesforce Tower and minutes from BART's Montgomery Street station in the South Financial District.

Google and its predecessor affiliate have leased the building since 2016. The property combines conventional office space with purpose-built laboratory infrastructure. The lease runs through December 2030.

The building is in the heart of San Francisco's Class A office submarket, surrounded by some of the strongest leasing activity in the city from artificial intelligence, technology and venture capital tenants. Anthropic, OpenAI, Databricks, Salesforce and Okta occupy neighboring buildings within a few blocks.

San Francisco recorded 3.6 million square feet of office leasing in the third quarter of 2026, according to Cushman & Wakefield. Year-to-date new leasing reached more than 9.0 million square feet, already exceeding the total for all of 2025. AI companies alone leased more than 4.4 million square feet through the first three quarters of the year, more than double their 2.1 million square feet in all of 2025. Citywide vacancy fell 410 basis points year over year to its lowest level since 2023.

This marks 1754's first office acquisition, said Alexander Galewicz, managing partner of 1754 Properties. The firm is a hotel and commercial real estate ownership and investment platform backed by family offices from the United States and abroad, financial institutions from the Middle East and private equity investment firms. 1754 is fortunate to have access to significant family offices which allow a more reliable closing through choppy geopolitical situations, inflation, rising interest rates and other difficult situations, Galewicz said.

The quiet money this cycle backs sponsors with written lease-rollover plans rather than occupancy-trend narratives, family office advisor Jaf Glazer has observed.

The investment represents capital deployment from 1754's co-GP investment program. We are thrilled to have been a co-sponsor along with Vander Capital, said Joe Smith, CEO of 1754 Properties. We are seeking more sponsors in office sector in top MSA locations who would benefit from 1754's GP capital, access to institutional limited partner equity capital, deep debt relationships, substantial guarantee capacity and finance and accounting teams to help execute a transaction, Smith said.

Based in South Florida with offices in Mexico City and Phoenix, 1754 Properties is an institutional owner, developer, lender and asset manager of hotels, restaurants and hospitality assets in addition to commercial real estate including office and multifamily. The firm's team has executed over 50 institutional investments with partners including pension plans of Fortune 500 companies, university endowments, private equity firms, top 100 worldwide international family offices, and one of the largest financial institutions in the Middle East. The firm typically invests in assets ranging from 50 million dollars to 500 million dollars in value.

The Deployment Angle

Family Office Real Estate Daily Desk · our analysis, not the source's

The co-GP route 1754 used here suits family offices willing to underwrite sponsor capacity alongside the asset itself. A 49,560-square-foot building with a single tenant through 2030 offers clean cash flow, but the structure demands operational alignment with Vander and comfort that the venture can handle rollover risk or an early exit if Google's space needs shift before lease expiry.

Family offices considering similar plays should focus on two pricing questions. First, what premium over replacement cost or comparable vacant sales does a four-year Google lease command in this submarket today. Second, what the building trades for if Google renews at lower rent per square foot or vacates entirely in late 2030, when the broader office recovery may have plateaued. The gap between those two values defines the downside.

The South Financial District backdrop—9.0 million square feet of leasing year-to-date and 410 basis points of vacancy compression—suggests demand depth that could support releasing if needed. But AI-driven absorption is concentrated among a narrow tenant set, and purpose-built lab infrastructure may not suit the next occupier. Underwrite the rollover as though the tenant credit expires with the lease, and size the equity commitment accordingly. Programmatic JVs or separate accounts with flexible exit windows offer more control than a locked co-GP structure if the 2030 rollover pricing proves unfavorable.

Family offices with existing San Francisco office exposure should compare this deal's basis to their own mark-to-market. If 1754 and Vander paid a premium to replacement cost for the Google covenant, it signals that single-tenant credit is now priced efficiently. Principals holding vacant or short-lease buildings should treat that as a clearing price for stabilised income, not a benchmark for repositioning value.

Questions this story answers

01Who acquired 40 Jessie Street in San Francisco and what did they buy?

A joint venture between affiliates of 1754 Properties and Vander Capital Partners acquired 40 Jessie Street, a 49,560-square-foot office building in downtown San Francisco. The building is 100% leased to Google through December 2030 and includes both conventional office space and purpose-built laboratory infrastructure.

02How long is Google's lease at 40 Jessie Street and when does it expire?

According to the acquisition announcement, Google and its predecessor affiliate have leased 40 Jessie Street since 2016, and the current lease runs through December 2030.

03What is the state of the San Francisco office market in 2026?

According to Cushman & Wakefield's San Francisco Office MarketBeat Q3 2026, San Francisco recorded 3.6 million square feet of office leasing in Q3 2026, with year-to-date leasing exceeding 9.0 million square feet, surpassing all of 2025. Citywide vacancy fell 410 basis points year over year to its lowest level since 2023.

04What is 1754 Properties' investor base and typical deal size?

1754 Properties is backed by top family offices from the USA and abroad, financial institutions from the Middle East, and private equity investment firms, according to the announcement. The firm typically invests in assets ranging from $50 million to $500 million in value and has executed over 50 institutional investments with partners including pension plans of Fortune 500 companies and university endowments.

05Is 1754 Properties seeking additional co-GP partners for office acquisitions?

Joe Smith, CEO of 1754 Properties, said the firm is seeking more sponsors in the office sector in top MSA locations who would benefit from 1754's GP capital, access to institutional limited partner equity capital, deep debt relationships, substantial guarantee capacity, and finance and accounting teams to help execute transactions.

Browse every question the desk has answered →

Original reporting

finance.yahoo.com

Read the original at finance.yahoo.com →

office-acquisitionsan-franciscosingle-tenant-leaseco-gp-capitaltech-sector

Peer Network · By Invitation

The Thesis Exchange

Share an investment thesis in confidence. We pair you anonymously with up to two other family offices running adjacent strategies. Reviewed by Gallium's editorial team. No vendor pitch.