Scott Sanborn, the CEO now steering Happen Bank, snapped up a big Financial District office tower at 88 Kearny about a year ago, and the property is already drawing unsolicited interest from would-be buyers. The move has put a downtown high-rise back in the spotlight as the city’s office market shows early signs of life. For San Francisco readers, the whole story feels like a test case: one executive’s bet on FiDi is stirring up offers from investors who think the bottom may finally be in sight.
The deal and what he paid
In April 2025, LendingClub, the company that will soon be known as Happen Bank, agreed to acquire the roughly 234,000-square-foot tower at 88 Kearny for about $74.5 million and planned to occupy roughly 100,000 square feet. The sale and the planned spring 2026 move-in were laid out in Hoodline.
Rebrand and ribbon cutting
The timing shifted after the bank announced in April that its banking arm would rebrand as Happen Bank this summer, a change CEO Scott Sanborn said reflects the company’s broader evolution into a digital bank. As reported by Banking Dive, the rollout is scheduled for July. On Tuesday, Sanborn helped cut a ceremonial ribbon at the building as the company marked its new San Francisco headquarters, according to the San Francisco Business Times.
Investors are knocking
Happen Bank is receiving regular offers from investors, the San Francisco Business Times reported, with private-equity and local buyer groups said to be circling the tower. That flurry of interest tracks a wider return of capital to gateway markets. CBRE's investor survey ranked the Bay Area among 2026's top targets and highlighted appetite for value-add office plays.
Why buyers see upside
Industry deal trackers show the sale priced the tower at roughly $318 per rentable square foot, or about $74.5 million for the 234,000-square-foot building, a level that has enticed buyers hunting steep discounts, according to Traded. Local market research points to improving leasing fundamentals and pockets of tenant demand, particularly from AI and other tech firms, which is beginning to lift value in key San Francisco submarkets, per Colliers.
What’s next for 88 Kearny
That split between occupied floors and leasable space gives Happen Bank options: hold the asset and collect rent, or sell to an investor looking for a ready-made FiDi play. The company has said it plans to occupy about 100,000 square feet and lease the balance, giving Sanborn flexibility to monetize the asset while maintaining a San Francisco presence, according to the company's announcement archived by Nasdaq. Either path will be closely watched by local brokers and owners trying to gauge how quickly downtown values recover.
For now, 88 Kearny is both a headquarters and a money-move: a bank hedging its real estate exposure while the market decides whether to bid its price back up. How aggressively Sanborn and Happen Bank respond to the offers will say a lot about investor appetite for San Francisco offices in 2026.
