Kairos Investment Management Acquires $35.4M Mortgage Loan for San Francisco Office Building

Kairos Investment Management Acquires $35.4M Mortgage Loan for San Francisco Office Building

Cristina Ramos
2 min read

Kairos Investment Management Acquires $35.4 Million Mortgage Loan for San Francisco Office Building

Kairos Investment Management, spearheaded by Carl Chang, has successfully acquired a $35.4 million mortgage loan for the 10-story office edifice situated at 550 Kearny Street within San Francisco's Financial District. The property's valuation post-acquisition stands at a reduced rate of $180 per square foot. Notably, this loan, initially valued at $89.9 million, was previously under the ownership of Brickman based in New York and BGO from Miami, who procured the structure in 2017 for $113 million. Additionally, the sale of this loan by the Canadian Imperial Bank of Commerce is part of a wider approach to diminish its involvement in U.S. office properties.

Kairos Investment Management now stands poised to assume control of the building in the event of the current proprietors defaulting on the loan or opting to relinquish ownership. This transition in ownership was instigated by apprehensions of further depreciation in real estate values, as highlighted earlier this year by Fortress Co-CEO Joshua Pack.

Key Takeaways

  • Kairos Investment Management has secured an $89.9 million loan for a San Francisco office building at a cost of $35.4 million.
  • The 10-story office structure at 550 Kearny Street now holds a value of $180 per square foot subsequent to the acquisition.
  • Canadian Imperial Bank of Commerce executed the sale of the loan as part of its strategy to reduce involvement in the sphere of U.S. office properties.
  • In the event of default on the loan by the current proprietors, Kairos Investment Management could assume control of the building.
  • The office edifice at 550 Kearny Street is presently experiencing a 37% vacancy rate.


The strategic acquisition by Kairos Investment Management of a discounted $35.4 million mortgage loan for a San Francisco office building serves as a pivotal move amidst the prevalent downturn in real estate values. The reduced valuation and the substantial vacancy rate indicate a pessimistic market sentiment and potential distress within the commercial real estate sector. This acquisition opens Kairos up to significant risk but also presents the prospect of substantial gains should market conditions ameliorate. Conversely, the sale executed by the Canadian Imperial Bank of Commerce reflects a cautious approach to their U.S. real estate investments, aligning with broader industry trends. The ramifications of this transaction may result in Kairos assuming ownership of the property, thereby impacting Brickman, BGO, and the overall San Francisco real estate landscape.

Did You Know?

  • Kairos Investment Management: The company specializes in real estate and alternative investments, renowned for its strategic prowess in acquiring undervalued assets. Led by Carl Chang, the firm frequently engages in opportunistic investments, targeting properties with the potential for substantial value appreciation.
  • Canadian Imperial Bank of Commerce (CIBC): As one of the major banks in Canada, CIBC provides an extensive array of financial services on a global scale. In this context, the divestment from U.S. office buildings is a strategic move to mitigate risk and reposition their investment portfolio in response to market conditions and strategic imperatives.
  • Brickman and BGO: Brickman, headquartered in New York, is a real estate investment firm known for its focus on high-quality commercial properties. BGO, based in Miami, is another firm specializing in real estate investments. Both entities were instrumental in the original acquisition of the 550 Kearny Street building in 2017, underscoring their collaborative involvement in substantial real estate transactions.

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