Strada Investment Group has paid $103 million for a 126,537-square-foot office building at 1 De Haro St. in San Francisco’s Design District, a price of roughly $814 per square foot. The local developer acquired the property from developer SKS Partners in a deal represented by Kidder Mathews.
The transaction is among the larger San Francisco office sales recorded this year, at a price per square foot well above recent distressed-sale comparables in the city’s downtown core, reflecting the relative strength of well-located, lower-density office product outside the traditional Financial District.
A market in transition
San Francisco’s office investment market has shown pockets of renewed strength in 2026 as AI-sector tenants expand their footprints and drive leasing activity in select submarkets, even as broader office vacancy in older downtown towers remains elevated. The Design District, known for creative and life-sciences-oriented office space, has drawn steady investor interest as buyers look for assets outside the traditional high-rise core.
A mass-timber landmark
The four-story, roughly 60-foot-tall building at 1 De Haro St. was completed by SKS Partners in 2021 and is notable as San Francisco’s first multistory building constructed fully with mass timber and cross-laminated timber. The property is fully leased to Samsara, the wireless networking and fleet-technology company, which keeps its global headquarters there.
SKS listed the building for sale in February, and Strada entered negotiations in April, acquiring the asset alongside an institutional pension-fund capital partner. The full-building lease to a single technology tenant, combined with the property’s newer vintage, distinguishes it from the older multi-tenant towers that have dominated San Francisco’s distressed-sale headlines.
What it means
Verified facts: Strada Investment Group paid $103 million for the 1 De Haro St. property, acquiring it from SKS Partners in a Kidder Mathews-brokered deal.
RealtyWire analysis: The per-square-foot pricing on this transaction stands out relative to San Francisco’s beleaguered downtown office towers, illustrating a growing bifurcation between distressed high-rise assets and smaller, well-located buildings that continue to command strong pricing. The sale adds to signs that AI-driven demand is reshaping which segments of San Francisco’s office market are attracting capital.
What to watch: Whether Strada’s purchase price sets a new benchmark for Design District office pricing, and whether similar premium pricing extends to other San Francisco submarkets outside the traditional financial core.
Source: CoStar data
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