An empty office building that just sold for a deep discount has landed a tenant.
According to sources familiar with the deal, Abridge — an AI startup that converts conversations between doctors and patients into clinical notes — has agreed to lease an entire building located at 208 Utah St.
The 80,000-square-foot building, previously occupied by the likes of Strava and Warner Bros., was purchased in June by San Francisco-based Redco Development for $15 million. The sellers of the century-old property were the Shorenstein family.
Redco and Abridge did not respond to requests for comment.
Abridge currently leases about 14,000 square feet at 450 Alabama St. in the Mission. It is not known when the new office will open.
The company was founded in 2018 and has a valuation of around $5.3 billion after a $300 million Series E funding (opens in new tab) in June. At the time, Abridge said it was using the new capital to hire more scientists, machine-learning experts, and software developers.
Abridge says its technology is used by more than 150 large U.S. health systems. In May, The Information reported that the company had reached $117 million in annual recurring revenue (opens in new tab).
The company’s AI-listening technology is meant to allow physicians to spend more time focusing on patients rather than inputting administrative notes. It also uses AI to access and share patients’ records.
The company was founded in Pittsburgh, where cofounder Dr. Shiv Rao is a practicing cardiologist. Last year, it shifted many of its corporate functions to San Francisco (opens in new tab).
Redco has been on a real estate buying spree for the past two years. Last month, it purchased the former Wells Fargo building to go with its two office buildings on San Francisco’s famed California Street corridor. The company in June purchased the former Oakland Raiders training complex in Alameda for $24 million.