Rialto Capital Advisors Forecloses on 580 Market Street (San Francisco Financial District Office)
Special servicer Rialto Capital Advisors took title to 580 Market Street, a 35,000-square-foot, century-old mixed-use office and retail building in San Francisco's Financial District, after a non-judicial trustee's sale. Owner Paragon Company defaulted on a $15.7 million loan that matured in June 2025; by the July 2026 trustee's deed the unpaid debt had grown to roughly $17.5 million, and Rialto took the property with a $5 million credit bid.
Why it matters
The sale is a fresh benchmark for how far San Francisco Financial District office values have fallen: an appraisal this year put the building at $9.9 million, nearly 60% below the $24.2 million Paragon paid in 2015, and even that discounted figure exceeds Rialto's winning credit bid. Owners and lenders with maturing office loans in the submarket should treat the pricing and Rialto's multi-year hold plan as a current data point for underwriting workouts and refinancings.
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