Lenders are reportedly preparing to sell debt tied to Juul Labs’ San Francisco office tower at 123 Mission Street, a move that could pave the way for new ownership of the downtown property, according to the San Francisco Business Journal. According to multiple sources, Affinius Capital is in talks to sell the debt to Madison Capital, though no agreement has been finalized and pricing details remain unclear. Juul and Affinius both declined to comment, but sources suggest the deal could position Madison to eventually take control of the property, depending on the loan’s performance and structure.
The Journal said the 123 Mission tower has had a turbulent ownership history since Juul purchased it in 2019 for $397 million, during the company’s rapid expansion, and then subsequent challenges as the market changed under regulatory uncertainty. After relocating its headquarters to Washington, D.C. in 2020, the company reportedly made several unsuccessful attempts to sell the building, including deals with PGIM and Pimco, both of which fell through amid the pandemic.
If completed, the pending transaction would mark another major San Francisco acquisition for Madison Capital, which has invested nearly $800 million in the Bay Area over the past eight years.