Kevin Truong

In a surprising move that <a href="https://sfstandard.com/2024/12/28/san-franciscos-next-real-estate-wave-is-starting-to-take-shape/">underscores the bargain-bin discounts</a> in the city&#8217;s real estate market, Empire, a record label founded in San Francisco, has purchased One Montgomery, a long-vacant historic building in the Financial District.

SF’s next real estate wave is starting to take shape

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<p>In a surprising move that <a href="https://sfstandard.com/2024/12/28/san-franciscos-next-real-estate-wave-is-starting-to-take-shape/">underscores the bargain-bin discounts</a> in the city's real estate market, Empire, a record label founded in San Francisco, has purchased One Montgomery, a long-vacant historic building in the Financial District.</p>

<p>In a surprising move that <a href="https://sfstandard.com/2024/12/28/san-franciscos-next-real-estate-wave-is-starting-to-take-shape/">underscores the bargain-bin discounts</a> in the city&#8217;s real estate market, Empire, a record label founded in San Francisco, has purchased One Montgomery, a long-vacant historic building in the Financial District.</p>

Real estate sources confirmed the deal for the nearly 100,000-square-foot property, which closed this week, and tagged the sale price at around $250 per foot, or in the low $20 million range. That&#8217;s a more than 60% haircut from the last time the building was sold, in 2019.

<p>Real estate sources confirmed the deal for the nearly 100,000-square-foot property, which closed this week, and tagged the sale price at around $250 per foot, or in the low $20 million range. That's a more than 60% haircut from the last time the building was sold, in 2019.</p>

<p>Real estate sources confirmed the deal for the nearly 100,000-square-foot property, which closed this week, and tagged the sale price at around $250 per foot, or in the low $20 million range. That&#8217;s a more than 60% haircut from the last time the building was sold, in 2019.</p>

The seller was Texas-based Affinius Capital, a real estate investment firm that has owned the property since 2022. The news was <a href="https://www.bizjournals.com/sanfrancisco/news/2025/01/23/one-montgomery-empire-sale-san-francisco.html">first reported</a> by the San Francisco Business Times.

<p>The seller was Texas-based Affinius Capital, a real estate investment firm that has owned the property since 2022. The news was <a href="https://www.bizjournals.com/sanfrancisco/news/2025/01/23/one-montgomery-empire-sale-san-francisco.html">first reported</a> by the San Francisco Business Times.</p>

Empire was founded in 2010 by Ghazi Shami, a Bay Area native who grew up listening to West Coast rap pioneers. The label has worked with award-winning artists, including Anderson .Paak, Shaboozey, and Migos. In 2022, Empire purchased fellow San Francisco label <a href="https://sfstandard.com/2024/07/15/another-planet-entertainment-dirtybird-embarcadero/">Dirtybird Records</a>.

Civic Center’s rave was a hit. Now another show—this one free—comes to the Embarcadero

<p>Empire was founded in 2010 by Ghazi Shami, a Bay Area native who grew up listening to West Coast rap pioneers. The label has worked with award-winning artists, including Anderson .Paak, Shaboozey, and Migos. In 2022, Empire purchased fellow San Francisco label <a href="https://sfstandard.com/2024/07/15/another-planet-entertainment-dirtybird-embarcadero/">Dirtybird Records</a>.</p>

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In many ways, One Montgomery represented the peak, nadir, and gradual recovery of San Francisco&#8217;s recent commercial real estate cycle.

<p>In many ways, One Montgomery represented the peak, nadir, and gradual recovery of San Francisco's recent commercial real estate cycle.</p>

<p>In many ways, One Montgomery represented the peak, nadir, and gradual recovery of San Francisco&#8217;s recent commercial real estate cycle.</p>

The building was sold to San Francisco-based Redco Development and its Boston-based partner AEW Capital Management for $82 million in 2019, a 70% premium from the price paid by the previous owner, 601W Cos. of New York.

<p>The building was sold to San Francisco-based Redco Development and its Boston-based partner AEW Capital Management for $82 million in 2019, a 70% premium from the price paid by the previous owner, 601W Cos. of New York.</p>

At the time, vacancy rates were in the single digits, and rents were at record highs. The partners planned to renovate the property to meet demand from creative startup tenants.

<p>At the time, vacancy rates were in the single digits, and rents were at record highs. The partners planned to renovate the property to meet demand from creative startup tenants.</p>

But the pandemic put those ideas — as well as downtown San Francisco&#8217;s larger office market — on ice. Seeing no path forward, Redco and AEW walked away from their investment and returned the keys to their lender, a predecessor company to Affinius.

<p>But the pandemic put those ideas — as well as downtown San Francisco's larger office market — on ice. Seeing no path forward, Redco and AEW walked away from their investment and returned the keys to their lender, a predecessor company to Affinius.</p>

<p>But the pandemic put those ideas — as well as downtown San Francisco&#8217;s larger office market — on ice. Seeing no path forward, Redco and AEW walked away from their investment and returned the keys to their lender, a predecessor company to Affinius.</p>

One Montgomery was built in 1908 as First National Bank&#8217;s headquarters. Its Italianate columns, marble elements, and lion statues are ornate monuments to the rebuilding of San Francisco after the 1906 earthquake and fire.&nbsp;

<p>One Montgomery was built in 1908 as First National Bank's headquarters. Its Italianate columns, marble elements, and lion statues are ornate monuments to the rebuilding of San Francisco after the 1906 earthquake and fire.&nbsp;</p>

<p>One Montgomery was built in 1908 as First National Bank&#8217;s headquarters. Its Italianate columns, marble elements, and lion statues are ornate monuments to the rebuilding of San Francisco after the 1906 earthquake and fire.&nbsp;</p>

Ownership eventually passed to the Crocker National Bank, which developed the nearby One Montgomery Tower and the adjacent Crocker Galleria.

<p>Ownership eventually passed to the Crocker National Bank, which developed the nearby One Montgomery Tower and the adjacent Crocker Galleria.</p>

For decades, the space served as a Wells Fargo branch, which <a href="https://sfstandard.com/2024/10/17/jpmorgan-new-downtown-bank/">shuttered</a> in 2019, leaving the property without an anchor tenant.

JPMorgan opens downtown branch for the ultra-rich as banks close across SF

<p>For decades, the space served as a Wells Fargo branch, which <a href="https://sfstandard.com/2024/10/17/jpmorgan-new-downtown-bank/">shuttered</a> in 2019, leaving the property without an anchor tenant.</p>

Homegrown record producer purchases long-vacant downtown SF building

Garrett Leahy

In a year that shattered records for high-end real estate, San Francisco’s housing market showcased some of the most jaw-dropping sales in city history, including the most expensive home ever sold, the oldest residence, and a house that finally changed hands after a saga over <a href="https://sfstandard.com/2023/08/30/rich-san-francisco-couple-lost-36m-homebuyer-pickleball-noise/">noise from a pickleball court</a>.

Rich San Francisco couple says they lost $36M homebuyer due to pickleball noise. The mansion has its own court

<p>In a year that shattered records for high-end real estate, San Francisco’s housing market showcased some of the most jaw-dropping sales in city history, including the most expensive home ever sold, the oldest residence, and a house that finally changed hands after a saga over <a href="https://sfstandard.com/2023/08/30/rich-san-francisco-couple-lost-36m-homebuyer-pickleball-noise/">noise from a pickleball court</a>.</p>

Here are the most expensive San Francisco home sales in 2024.

<p>Here are the most expensive San Francisco home sales in 2024.</p>


<h2 class="wp-block-heading" id="h-laurene-s-lair-71-million">Laurene&#8217;s lair: $71 million</h2>


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<h2 class="wp-block-heading" id="h-laurene-s-lair-71-million">Laurene's lair: $71 million</h2>

<h2 class="wp-block-heading" id="h-laurene-s-lair-71-million">Laurene&#8217;s lair: $71 million</h2>

A man walking his dog passes by 2840 Broadway in San Francisco on Monday, Dec. 23, 2024. This home is one of the most expensive sold in San Francisco in 2024.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/12/8064000559-realestate-5-edited.jpg" alt="A man walks a German Shepherd past a large, light-colored house with black wrought-iron balconies and a gate, surrounded by greenery on a misty day." class="wp-image-347829"/><figcaption class="wp-element-caption">The home at 2840 Broadway is the most expensive ever sold in San Francisco.</figcaption></figure>


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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/12/8064000559-realestate-5-edited.jpg" alt="A man walks a German Shepherd past a large, light-colored house with black wrought-iron balconies and a gate, surrounded by greenery on a misty day." class="wp-image-347829"/><figcaption class="wp-element-caption">The home at 2840 Broadway is the most expensive ever sold in San Francisco.</figcaption></figure>

<span style="box-sizing: border-box; margin: 0px; padding: 0px;">Laurene Powell Jobs, the widow of Steve Jo</span>bs, <span style="box-sizing: border-box; margin: 0px; padding: 0px;">bough</span>t the <a href="https://sfstandard.com/2024/07/12/laurene-powell-jobs-mansion-2840-broadway/">most expensive home&nbsp;ever sold</a> in San Francisco in July, paying around $71 million for a Pacific Heights estate.&nbsp;

This billionaire is the new owner of San Francisco&#8217;s most expensive home

<p><span style="box-sizing: border-box; margin: 0px; padding: 0px;">Laurene Powell Jobs, the widow of Steve Jo</span>bs, <span style="box-sizing: border-box; margin: 0px; padding: 0px;">bough</span>t the <a href="https://sfstandard.com/2024/07/12/laurene-powell-jobs-mansion-2840-broadway/">most expensive home&nbsp;ever sold</a> in San Francisco in July, paying around $71 million for a Pacific Heights estate.&nbsp;</p>

Described as the “most beautiful house in America” by <a href="https://www.architecturaldigest.com/story/inside-a-historic-san-francisco-mansion-where-art-and-design-reign-free">Architectural Digest</a>, 2840 Broadway, on a stretch known as Billionaires&#8217; Row, was sold in an off-market deal. The 17,286-square-foot home has seven bathrooms. There&#8217;s little other information.

<p>Described as the “most beautiful house in America” by <a href="https://www.architecturaldigest.com/story/inside-a-historic-san-francisco-mansion-where-art-and-design-reign-free">Architectural Digest</a>, 2840 Broadway, on a stretch known as Billionaires' Row, was sold in an off-market deal. The 17,286-square-foot home has seven bathrooms. There's little other information.</p>

<p>Described as the “most beautiful house in America” by <a href="https://www.architecturaldigest.com/story/inside-a-historic-san-francisco-mansion-where-art-and-design-reign-free">Architectural Digest</a>, 2840 Broadway, on a stretch known as Billionaires&#8217; Row, was sold in an off-market deal. The 17,286-square-foot home has seven bathrooms. There&#8217;s little other information.</p>

According to the PropertyShark database, the estate was built in 1916.

<p>According to the PropertyShark database, the estate was built in 1916.</p>

The sellers were Sloan Lindemann Barnett, daughter of the late billionaire art collector George Lindemann, and Roger Barnett, CEO of nutritional products Shaklee Corporation. The couple purchased the property in 2011 for a cool $33 million and made extensive renovations during their ownership.

<p>The sellers were Sloan Lindemann Barnett, daughter of the late billionaire art collector George Lindemann, and Roger Barnett, CEO of nutritional products Shaklee Corporation. The couple purchased the property in 2011 for a cool $33 million and made extensive renovations during their ownership.</p>

The previous record for the most expensive home sold in San Francisco was $43.5 million in 2021.

<p>The previous record for the most expensive home sold in San Francisco was $43.5 million in 2021.</p>

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<h2 class="wp-block-heading" id="h-the-bridge-view-stunner-29-15-million">The bridge-view stunner: $29.15 million</h2>


The seven-bedroom, nine-bathroom mansion at 2799 Broadway has panoramic views of the Golden Gate Bridge, Alcatraz, and the San Francisco Bay. 


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/12/p7etxj-2799-broadway10.jpg?w=2000" alt="A luxurious living room features velvet sofas, floral arrangements on a central table, and large windows with turquoise frames revealing a scenic outdoor view." class="wp-image-346748"/><figcaption class="wp-element-caption">A rooftop terrace with a spa and a lacquered living/dining room.</figcaption></figure>


The No. 2 most expensive home of the year is less than a block away, at 2799 Broadway. The 11,635-square-foot Pacific Heights mansion sold in August for $29.15 million.

<p>The No. 2 most expensive home of the year is less than a block away, at 2799 Broadway. The 11,635-square-foot Pacific Heights mansion sold in August for $29.15 million.</p>

Built in 2004, this seven-bedroom, nine-bathroom property has  views of the Golden Gate Bridge and Alcatraz. Constructed with concrete and steel, it boasts high-end finishes, radiant heating, a rooftop terrace with a spa, and a lacquered living/dining room. It also has a library, gym, pub-style billiards room, and a wine cellar. The property is equipped with smart-home technology, an elevator, and a four-car garage.

<p>Built in 2004, this seven-bedroom, nine-bathroom property has  views of the Golden Gate Bridge and Alcatraz. Constructed with concrete and steel, it boasts high-end finishes, radiant heating, a rooftop terrace with a spa, and a lacquered living/dining room. It also has a library, gym, pub-style billiards room, and a wine cellar. The property is equipped with smart-home technology, an elevator, and a four-car garage.</p>

The mansion at 2799 Broadway sold in August for $29.15 million.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/12/p7etxj-2799-broadway15.jpg?w=2500" alt="A spacious, elegant living area features a cozy sectional, colorful cushions, a white coffee table with flowers, and an open kitchen with stainless steel appliances." class="wp-image-346749"/><figcaption class="wp-element-caption">The seven-bedroom, nine-bathroom house sold in August for $29.15 million.</figcaption></figure>



<h2 class="wp-block-heading" id="h-the-pacific-as-backyard-26-million">The Pacific as backyard: $26 million</h2>


A 7,890 square-foot Spanish-revival home at 290 Sea Cliff Ave. sold in July for $26 million.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/12/dsc1365-2.jpg?w=2500" alt="Two white chairs face large windows with a view of a calm sea and distant mountains. A bridge is visible to the right against a clear evening sky." class="wp-image-346807"/><figcaption class="wp-element-caption">The third most expensive home sold in San Francisco this year is perched above the Golden Gate.</figcaption></figure>


Perched above the Golden Gate, the Spanish revival home at 290 Sea Cliff Ave. spans 7,890 square feet and has four bedrooms and five bathrooms, as well as a sprawling backyard.

<p>Perched above the Golden Gate, the Spanish revival home at 290 Sea Cliff Ave. spans 7,890 square feet and has four bedrooms and five bathrooms, as well as a sprawling backyard.</p>

Designed by Earle B. Bertz in the 1920s, it sold for $26 million in July. It has views of the Golden Gate Bridge, Marin Headlands, and Baker Beach, making it a rare find even among the area’s remarkable real estate.

<p>Designed by Earle B. Bertz in the 1920s, it sold for $26 million in July. It has views of the Golden Gate Bridge, Marin Headlands, and Baker Beach, making it a rare find even among the area’s remarkable real estate.</p>

The home, which retains its vaulted ceilings and arched doorways, has modern amenities like radiant heating, a wine fridge, and an oceanfront deck.&nbsp;

<p>The home, which retains its vaulted ceilings and arched doorways, has modern amenities like radiant heating, a wine fridge, and an oceanfront deck.&nbsp;</p>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/12/290seacliff32_mls-7-of-95.jpg?w=2500" alt="A serene garden with lush greenery and purple flowers surrounds white patio furniture. A wall with climbing vines adds an elegant touch to the peaceful scene." class="wp-image-346808"/><figcaption class="wp-element-caption">The Spanish revival home at 290 Sea Cliff Ave. has a sprawling backyard.</figcaption></figure>



<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/12/290seacliff32_mls-27-of-95.jpg?w=2500" alt="A serene room with large windows reveals a stunning ocean sunset view. Three white chairs face the view, and abstract art hangs on the wall." class="wp-image-346809"/><figcaption class="wp-element-caption">The house sold in July for $26 million.</figcaption></figure>



<h2 class="wp-block-heading" id="h-the-pickleball-palace-24-million">The pickleball palace: $24 million</h2>


3630 Jackson St. is a historic six-bedroom, seven-bathroom, single-family home built in 1917 and sold for $24 million in April.



<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/12/img-2323-rotated-1.webp?w=1200" alt="A white multi-story house with black trim sits on a hilly street. Manicured hedges and bushes line the sidewalk, and a blue sky is overhead." class="wp-image-346769"/><figcaption class="wp-element-caption">The six-bedroom, seven-bathroom house at 3630 Jackson St. </figcaption></figure>


At No. 4 is 3630 Jackson St., which sold in April for $24 million. The spacious home with original wood-frame construction has convenient access to the Presidio.

<p>At No. 4 is 3630 Jackson St., which sold in April for $24 million. The spacious home with original wood-frame construction has convenient access to the Presidio.</p>

The previous owners lost a potential buyer in 2023 over noise from a nearby <a href="https://sfstandard.com/2023/08/30/rich-san-francisco-couple-lost-36m-homebuyer-pickleball-noise/">pickleball court</a>, prompting Holly Peterson, who owned the home with her venture capitalist husband, Karl Peterson, to start a petition to have the Presidio Wall public pickleball courts environmentally assessed due to noise.

<p>The previous owners lost a potential buyer in 2023 over noise from a nearby <a href="https://sfstandard.com/2023/08/30/rich-san-francisco-couple-lost-36m-homebuyer-pickleball-noise/">pickleball court</a>, prompting Holly Peterson, who owned the home with her venture capitalist husband, Karl Peterson, to start a petition to have the Presidio Wall public pickleball courts environmentally assessed due to noise.</p>


<h2 class="wp-block-heading" id="h-the-beast-of-broadway-23-8-million">The Beast of Broadway: $23.8 million</h2>


This mansion at 2350 Broadway sold for  $23.8 million in March.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/12/exterior-front-02.jpg?w=2500" alt="The image shows a modern two-story house with a steep roof and a white facade. Trees partially obscure the view, and it's situated on a sloped street." class="wp-image-346762"/><figcaption class="wp-element-caption">This mansion at 2350 Broadway sold for  $23.8 million in March.</figcaption></figure>


This Pacific Heights behemoth at 2350 Broadway changed hands in March for $23.8 million — quite a jump from its previous sale for $7.3 million in 2010. The 9,079-square-foot home, built in 1900, has five bedrooms and eight bathrooms.

<p>This Pacific Heights behemoth at 2350 Broadway changed hands in March for $23.8 million — quite a jump from its previous sale for $7.3 million in 2010. The 9,079-square-foot home, built in 1900, has five bedrooms and eight bathrooms.</p>

The house sits on a 5,500-square-foot lot, huge by San Francisco standards. The location in one of the city&#8217;s most prestigious neighborhoods adds to the allure.

<p>The house sits on a 5,500-square-foot lot, huge by San Francisco standards. The location in one of the city's most prestigious neighborhoods adds to the allure.</p>

<p>The house sits on a 5,500-square-foot lot, huge by San Francisco standards. The location in one of the city&#8217;s most prestigious neighborhoods adds to the allure.</p>


<h2 class="wp-block-heading" id="h-oldest-home-in-the-city-22-1-million">Oldest home in the city: $22.1 million</h2>


Built in 1850, a mansion at 825 Francisco St. sold for $22.1 million and is the oldest surviving residential property in the city, according to a Zillow listing.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/12/l1_back_pool_8956.jpg?w=2500" alt="A long, narrow swimming pool is surrounded by a brick patio, lush greenery, and a modern white house with large windows under a clear blue sky." class="wp-image-346814"/><figcaption class="wp-element-caption">The backyard has a lap pool.</figcaption></figure>


This Russian Hill mansion sold Nov. 15 for a whopping $22.1 million. Built in 1850, it&#8217;s the oldest home in the city, according to a Zillow listing.&nbsp;

<p>This Russian Hill mansion sold Nov. 15 for a whopping $22.1 million. Built in 1850, it's the oldest home in the city, according to a Zillow listing.&nbsp;</p>

<p>This Russian Hill mansion sold Nov. 15 for a whopping $22.1 million. Built in 1850, it&#8217;s the oldest home in the city, according to a Zillow listing.&nbsp;</p>

The 8,440-square-foot home has five bedrooms and seven bathrooms on four floors, with views from the Golden Gate Bridge to Coit Tower. There&#8217;s also a pool.

<p>The 8,440-square-foot home has five bedrooms and seven bathrooms on four floors, with views from the Golden Gate Bridge to Coit Tower. There's also a pool.</p>

<p>The 8,440-square-foot home has five bedrooms and seven bathrooms on four floors, with views from the Golden Gate Bridge to Coit Tower. There&#8217;s also a pool.</p>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/12/ext_front_8986.jpg?w=2500" alt="A white, two-story house with large windows and a porch is surrounded by greenery. Brick steps lead up to the entrance, framed by a tree and manicured lawn." class="wp-image-346813"/><figcaption class="wp-element-caption">Built in 1850, 825 Francisco St. is the oldest residential property in the city, according to a Zillow listing.</figcaption></figure>



<h2 class="wp-block-heading" id="h-washington-st-heights-22-million">Washington (St.) heights: $22 million</h2>


The outside of 3621 Washington Street in San Francisco on Monday, Dec. 23, 2024. This home is one of the most expensive sold in San Francisco in 2024.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/12/8064000559-realestate-13-edited.jpg" alt="The image shows a large, elegant, cream-colored building with tall arched windows and black metal railings. It’s surrounded by greenery and enclosed by a black gate." class="wp-image-347836"/><figcaption class="wp-element-caption">The 1925 mansion at 3621 Washington St. sold for $22 million.</figcaption></figure>


The 1925 Presidio Heights mansion at 3621 Washington St. sold for an eye-popping $22 million — nearly triple what it went for in 2015.&nbsp;

<p>The 1925 Presidio Heights mansion at 3621 Washington St. sold for an eye-popping $22 million — nearly triple what it went for in 2015.&nbsp;</p>

The 3,650-square-foot home has four bedrooms on four floors and a spacious backyard. It has been updated with central air conditioning but keeps its old-school charm, with hardwood floors and original fireplaces throughout.

<p>The 3,650-square-foot home has four bedrooms on four floors and a spacious backyard. It has been updated with central air conditioning but keeps its old-school charm, with hardwood floors and original fireplaces throughout.</p>

The real kicker is the lot size: nearly 5,000 square feet. There&#8217;s a separate garage and city views that remind you why people pay crazy prices to live here.&nbsp;

<p>The real kicker is the lot size: nearly 5,000 square feet. There's a separate garage and city views that remind you why people pay crazy prices to live here.&nbsp;</p>

<p>The real kicker is the lot size: nearly 5,000 square feet. There&#8217;s a separate garage and city views that remind you why people pay crazy prices to live here.&nbsp;</p>

The most expensive SF mansions sold in 2024

Kevin V. Nguyen

A severe budget crisis at the San Francisco Unified School District means that regardless of <a href="https://sfstandard.com/2024/10/17/superintendent-to-resign-amid-school-closure-chaos/">what happens with the superintendent</a>, a wave of school closures and mergers is likely coming. While reducing costs shores up one side of the balance sheet, generating cash is critical for the other.

Superintendent to resign amid school closure chaos

<p>A severe budget crisis at the San Francisco Unified School District means that regardless of <a href="https://sfstandard.com/2024/10/17/superintendent-to-resign-amid-school-closure-chaos/">what happens with the superintendent</a>, a wave of school closures and mergers is likely coming. While reducing costs shores up one side of the balance sheet, generating cash is critical for the other.</p>

As a nonprofit public agency, the district is limited in its ability to raise money outside of government funds (which are tied directly to enrollment) and local taxes and fees (which are sporadic). But one asset the district does have at its disposal is real estate.&nbsp;

<p>As a nonprofit public agency, the district is limited in its ability to raise money outside of government funds (which are tied directly to enrollment) and local taxes and fees (which are sporadic). But one asset the district does have at its disposal is real estate.&nbsp;</p>

In total, SFUSD owns 9.9 million square feet across 155 properties, making it the third largest holder of city-owned property, according to the district’s most recent <a href="https://go.boarddocs.com/ca/sfusd/Board.nsf/files/CQP5P3111C0E/$file/2023-04-25%20SFUSD%202023%20FMP%20FINAL.pdf">facilities master plan</a>. Of that portfolio, SFUSD recently <a href="https://sfstandard.com/2024/10/08/school-closure-list-sfusd/">identified 13 schools for closure</a> or merger.

13 SF public schools targeted for closure or mergers

<p>In total, SFUSD owns 9.9 million square feet across 155 properties, making it the third largest holder of city-owned property, according to the district’s most recent <a href="https://go.boarddocs.com/ca/sfusd/Board.nsf/files/CQP5P3111C0E/$file/2023-04-25%20SFUSD%202023%20FMP%20FINAL.pdf">facilities master plan</a>. Of that portfolio, SFUSD recently <a href="https://sfstandard.com/2024/10/08/school-closure-list-sfusd/">identified 13 schools for closure</a> or merger.</p>

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In the private sector, companies are incentivized to either <a href="https://sfstandard.com/2024/01/05/brookfield-ballast-residential-landlord-in-sf-apartment-veritas/">sell distressed assets or walk away from underwater loans</a>. Business logic would have the school district do the same, since it claims it can <a href="https://www.sfusd.edu/announcements/2024-10-15-doing-right-all-san-francisco-students">no longer afford</a> to operate or maintain those properties. But in reality, public schools are reluctant to let go of real estate, especially in San Francisco, where the scarce commodity would be difficult to acquire again by a district with limited resources.

This real estate company dumped its downtown San Francisco mall. Now it&#8217;s gobbling up apartments

<p>In the private sector, companies are incentivized to either <a href="https://sfstandard.com/2024/01/05/brookfield-ballast-residential-landlord-in-sf-apartment-veritas/">sell distressed assets or walk away from underwater loans</a>. Business logic would have the school district do the same, since it claims it can <a href="https://www.sfusd.edu/announcements/2024-10-15-doing-right-all-san-francisco-students">no longer afford</a> to operate or maintain those properties. But in reality, public schools are reluctant to let go of real estate, especially in San Francisco, where the scarce commodity would be difficult to acquire again by a district with limited resources.</p>

SFUSD officials have not said they intend to sell any property, and the district’s master plan makes no mention of doing so. Furthermore, even if sales were to happen, <a href="https://casetext.com/statute/california-codes/california-education-code/title-1-general-education-code-provisions/division-1-general-education-code-provisions/part-105-school-facilities/chapter-4-property-sale-lease-exchange">state law</a> restricts SFUSD from spending the proceeds on anything aside from maintaining or upgrading its facilities, meaning teacher salaries or other general operating expenses are <a href="https://casetext.com/statute/california-codes/california-education-code/title-1-general-education-code-provisions/division-1-general-education-code-provisions/part-105-school-facilities/chapter-4-property-sale-lease-exchange/article-4-sale-or-lease-of-real-property/section-17462-use-of-funds-derived-from-sale-of-surplus-property">off the table</a>.&nbsp;

<p>SFUSD officials have not said they intend to sell any property, and the district’s master plan makes no mention of doing so. Furthermore, even if sales were to happen, <a href="https://casetext.com/statute/california-codes/california-education-code/title-1-general-education-code-provisions/division-1-general-education-code-provisions/part-105-school-facilities/chapter-4-property-sale-lease-exchange">state law</a> restricts SFUSD from spending the proceeds on anything aside from maintaining or upgrading its facilities, meaning teacher salaries or other general operating expenses are <a href="https://casetext.com/statute/california-codes/california-education-code/title-1-general-education-code-provisions/division-1-general-education-code-provisions/part-105-school-facilities/chapter-4-property-sale-lease-exchange/article-4-sale-or-lease-of-real-property/section-17462-use-of-funds-derived-from-sale-of-surplus-property">off the table</a>.&nbsp;</p>

Rather than pursue sales or redevelopment, SFUSD will focus on “activating” school sites that have been closed, spokesperson Laura Dudnick said in a statement.&nbsp;

<p>Rather than pursue sales or redevelopment, SFUSD will focus on “activating” school sites that have been closed, spokesperson Laura Dudnick said in a statement.&nbsp;</p>

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At those sites, the district’s priority will be to make use of those spaces to expand programs such as early education centers, serving preschool and transitional kindergarten students.&nbsp;

<p>At those sites, the district’s priority will be to make use of those spaces to expand programs such as early education centers, serving preschool and transitional kindergarten students.&nbsp;</p>

“If there are vacant sites once all of SFUSD’s needs have been met, we will consider city partnership opportunities,” Dudnick said, adding that the district will continue paying for custodial and security services at those locations.&nbsp;

<p>“If there are vacant sites once all of SFUSD’s needs have been met, we will consider city partnership opportunities,” Dudnick said, adding that the district will continue paying for custodial and security services at those locations.&nbsp;</p>

Dudnick said that starting next fall, playgrounds at certain elementary schools will be shared with local communities on weekends, while unused rooms and outdoor spaces will be made available under the district’s <a href="https://www.sfusd.edu/business-with-sfusd/real-estate/using-and-renting-sfusd-facilities">existing rental program,</a> which allows for nonprofit groups, public agencies, and private or commercial users to book spaces for events, subject to school approval.&nbsp;

<p>Dudnick said that starting next fall, playgrounds at certain elementary schools will be shared with local communities on weekends, while unused rooms and outdoor spaces will be made available under the district’s <a href="https://www.sfusd.edu/business-with-sfusd/real-estate/using-and-renting-sfusd-facilities">existing rental program,</a> which allows for nonprofit groups, public agencies, and private or commercial users to book spaces for events, subject to school approval.&nbsp;</p>

SFUSD’s analysis of its portfolio shows its buildings are not being efficiently utilized. According to district data, just 20 of 72 elementary schools are more than 90% occupied, while eight of 21 middle schools and five of 17 high schools meet that mark.&nbsp;

<p>SFUSD’s analysis of its portfolio shows its buildings are not being efficiently utilized. According to district data, just 20 of 72 elementary schools are more than 90% occupied, while eight of 21 middle schools and five of 17 high schools meet that mark.&nbsp;</p>

Students gather at the Harvey Milk Civil Rights Academy before a protest in response to school closures in San Francisco, on Wednesday, Oct. 9, 2024. The San Francisco Unified School District announced Tuesday a list of schools including the Harvey Milk Civil Rights Academy that could face closures and eventual mergers.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/10/20241009-harveymilkprotest_0107.jpg?w=2500" alt="Children holding signs stand in front of a colorful mural, surrounded by adults watching them in an outdoor playground area." class="wp-image-320609"/><figcaption class="wp-element-caption">Students gather this month at Harvey Milk Civil Rights Academy to protest a potential closure.</figcaption></figure>


Mark Sanchez, left, and superintendent Matt Wayne listen to people comment during a school board meeting in San Francisco on October 8, 2024.The planed meeting took place just after San Francisco Unified School District announced that several schools could be closed.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/10/20241008-schoolboardmeetdrama_aar_5.jpg?w=2500" alt="Two men sit at a table with laptops and nameplates. One is focused, and the other is speaking. There's a U.S. flag in the background." class="wp-image-320258"/><figcaption class="wp-element-caption">SFUSD Superintendent Matt Wayne, right, has agreed to step down after residents and politicians pushed back against the planned closures.</figcaption></figure>


Adding to the distress, an internal assessment of the <a href="https://go.boarddocs.com/ca/sfusd/Board.nsf/files/CK54D50AFF58/$file/20221011%20Presentation%20(revised)%20Facilities%20Condition%20Assessment%20-%20BOE.pdf">district’s facility conditions</a> estimates that nearly $1.7 billion in repair or renewal costs are needed in the immediate future. Public school advocates are focusing their efforts on Proposition A in the <a href="https://sfstandard.com/2024/10/09/san-francisco-election-ballot-bot-chat-gpt-ai-voter-guide/">upcoming election</a>, a measure that&nbsp; aims to raise $790 million in bonds for building improvements.

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<p>Adding to the distress, an internal assessment of the <a href="https://go.boarddocs.com/ca/sfusd/Board.nsf/files/CK54D50AFF58/$file/20221011%20Presentation%20(revised)%20Facilities%20Condition%20Assessment%20-%20BOE.pdf">district’s facility conditions</a> estimates that nearly $1.7 billion in repair or renewal costs are needed in the immediate future. Public school advocates are focusing their efforts on Proposition A in the <a href="https://sfstandard.com/2024/10/09/san-francisco-election-ballot-bot-chat-gpt-ai-voter-guide/">upcoming election</a>, a measure that&nbsp; aims to raise $790 million in bonds for building improvements.</p>

According to district data, SFUSD has 14 other properties that are not being used for educational or administrative purposes and are leased to various entities. These include parking lots and office space for nonprofits and a 75,675-square-foot lot under the <a href="https://sfstandard.com/2024/01/24/san-francisco-centre-mall-store-owners-pray-for-turnaround/">San Francisco Centre Mall</a> on Market Street.&nbsp;

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<p>According to district data, SFUSD has 14 other properties that are not being used for educational or administrative purposes and are leased to various entities. These include parking lots and office space for nonprofits and a 75,675-square-foot lot under the <a href="https://sfstandard.com/2024/01/24/san-francisco-centre-mall-store-owners-pray-for-turnaround/">San Francisco Centre Mall</a> on Market Street.&nbsp;</p>

SFUSD this year has generated approximately $7.7 million from its leases, the district confirmed.&nbsp;

<p>SFUSD this year has generated approximately $7.7 million from its leases, the district confirmed.&nbsp;</p>

Meanwhile, SFUSD has two plots of undeveloped land, totaling more than 280,000 square feet. One district-owned site in the Outer Sunset was <a href="https://www.sf.gov/news/san-francisco-announces-two-new-affordable-educator-housing-projects-0">redeveloped into teacher housing</a> last year; two others have been <a href="https://www.sfexaminer.com/news/education/san-francisco-pegs-two-more-sites-for-sfusd-teacher-housing/article_8b40fc76-fdc3-11ee-8fcc-fb2e6c79859d.html">earmarked for the same</a>.&nbsp;

<p>Meanwhile, SFUSD has two plots of undeveloped land, totaling more than 280,000 square feet. One district-owned site in the Outer Sunset was <a href="https://www.sf.gov/news/san-francisco-announces-two-new-affordable-educator-housing-projects-0">redeveloped into teacher housing</a> last year; two others have been <a href="https://www.sfexaminer.com/news/education/san-francisco-pegs-two-more-sites-for-sfusd-teacher-housing/article_8b40fc76-fdc3-11ee-8fcc-fb2e6c79859d.html">earmarked for the same</a>.&nbsp;</p>


<h2 class="wp-block-heading" id="h-private-school-choice">Private school choice</h2>


Whereas public schools are stuck with excess they can’t get rid of, private schools are often hungry for bigger space.&nbsp;

<p>Whereas public schools are stuck with excess they can’t get rid of, private schools are often hungry for bigger space.&nbsp;</p>

For most of his time leading the Chinese American International School — one of the city’s most sought-after <a href="https://sfstandard.com/2024/09/09/private-chinese-mandarin-schools-san-francisco/">private dual-language immersion schools</a> — Jeff Bissell has had to cobble together small bits of real estate as it has grown.

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<p>For most of his time leading the Chinese American International School — one of the city’s most sought-after <a href="https://sfstandard.com/2024/09/09/private-chinese-mandarin-schools-san-francisco/">private dual-language immersion schools</a> — Jeff Bissell has had to cobble together small bits of real estate as it has grown.</p>

The front entrance of 3250 19th Ave. on Tuesday, Oct. 15. The site used to be Mercy High School, but it has since been converted into Chinese American International School. SFUSD recently announced over 10 schools across the district will likely close by the next school year. What will happen to the buildings? The buildings in these photos are former school buildings and now have been converted for other uses or abandoned.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/10/202410-schoolclosuresrealestate-es-31.jpg?w=2500" alt="The image shows a modern building with an orange and gray facade, featuring large windows and a prominent arched entrance, surrounded by greenery." class="wp-image-322409"/><figcaption class="wp-element-caption">The former Mercy High School is now home to the Chinese American International School, which purchased it for $40 million in 2021.</figcaption></figure>


The front entrance of 300 Valley Street still has its original signage on Tuesday, Oct. 15. The site used to be St. Paul’s Primary School, but it is now being turned into condos. SFUSD recently announced over 10 schools across the district will likely close by the next school year. What will happen to the buildings? The buildings in these photos are former school buildings and now have been converted for other uses or abandoned.


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/10/202410-schoolclosuresrealestate-es-15.jpg?w=2500" alt="The image shows a white building with a modern design featuring large windows. The stone plaque at the base reads &quot;St. Paul's Primary School.&quot;" class="wp-image-322414"/><figcaption class="wp-element-caption">St. Paul’s Primary School in Noe Valley was transformed into condos after the school sold the building in 1999 and relocated down the street.</figcaption></figure>


In 2020, the religious institute Sisters of Mercy closed its all-girls preparatory school. CAIS purchased the 82,000-square-foot property the following year for $40 million.&nbsp;&nbsp;

<p>In 2020, the religious institute Sisters of Mercy closed its all-girls preparatory school. CAIS purchased the 82,000-square-foot property the following year for $40 million.&nbsp;&nbsp;</p>

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