A 152,000-square-foot building at 300 Kansas Street in San Francisco's Mission Bay submarket has a new owner after Lincoln Property Company and Sabal Investment Holdings acquired the property through a deed-in-lieu of foreclosure, purchasing the underlying debt from Bank of America before taking title. The firms secured an $87.9 million loan to fund the acquisition and lease-up of the site.
The deal, first reported by The Real Deal, includes an $87.9 million first-priority acquisition and lease-up loan. Commercial real estate lender BridgeInvest issued the loan through its evergreen discretionary fund, BridgeInvest Credit Fund V LP, according to REBusinessOnline. Following the transaction, former owner Spear Street Capital officially reclassified 300 Kansas Street as a “past asset” in its corporate portfolio, per reporting from GlobeSt.
Cushman & Wakefield's J.D. Lumpkin and Steve Horton are handling leasing for the building.
Zoning Shapes the Tenant Pool
The site's research-and-development positioning makes companies working in hardware, robotics, and other physical technology natural targets for 300 Kansas Street.
The building sits in the middle of a broader shift as AI companies move beyond software into robotics, autonomous systems, industrial automation, and other hardware-heavy applications.
Showplace Square's Physical AI Momentum
The takeover lands amid a wave of hardware-driven leasing activity in the neighborhood. Airbnb leased the 100,000-square-foot Takahashi building in Showplace Square this month, and commercial real estate demand across Showplace Square and adjacent Potrero Hill has been buoyed by other physical AI expansions, including Scale AI's 180,000-square-foot sublease at 650 Townsend Street and Stockbridge's $132 million purchase of Potrero Hill Flats in August.
The broader life sciences and research-and-development market tells a starkly different story. San Francisco's life sciences and R&D sector recorded a 29.1% vacancy rate in the fourth quarter of 2025, with average asking rents dropping to $5.89 per square foot per month, according to Cushman & Wakefield data cited by GlobeSt. That contrast underscores why lenders like BridgeInvest are betting that purpose-built, hardware-ready PDR space — rather than conventional lab or office product — represents the more resilient niche in San Francisco's commercial recovery.
Other San Francisco Assignments
Co-buyer Lincoln Property Company, meanwhile, is juggling other high-stakes San Francisco assignments, including a proposed overhaul at 536 Mission Street that faces an 18-month Prop M deadline under the city's office allocation enforcement policy.
Whether 300 Kansas Street can fill its 152,000 square feet with robotics, autonomous-systems, or industrial-automation tenants remains to be seen in a city otherwise drowning in office and lab vacancies.
