Harvest Properties of San Francisco and an affiliate of global private equity firm Lone Star Funds of Dallas formed a joint venture to recapitalize the 20-story office tower at 600 California St.

Lone Star acquired the 360K SF property formerly owned by WeWork Capital Advisors out of receivership after the office coworking company stopped paying its rent in April 2023.

A Lone Star affiliate in January acquired the nonperforming $240M CMBS loan on the building for $130M. WeWork paid $332M for the building in August 2019.

Harvest will take an equity position in the property and oversee day-to-day operations, leasing and strategic repositioning of the property at the corners of Kearny and California streets, the companies said in a joint press release.

“600 California is well-positioned to benefit from the improving market dynamics in San Francisco behind further investment and we look forward to partnering with Harvest in this opportunity,” Lone Star Global Head of Commercial Real Estate Jérôme Foulon said in a statement.

In April, the office tower went to auction but failed to draw any interest, effectively making Lone Star Funds the owner, the San Francisco Chronicle reported.

Harvest will begin improvements at the property, including renovating the outside plaza and front lobby, creating a rooftop deck and adding between 10K and 15K SF of amenity space for a fitness center, tenant lounge and flexible meeting spaces. Harvest Director Chris Trotier will oversee repositioning efforts.

Prospective tenants have already shown renewed interest via an uptick in touring activity for space ranging from 5K to 250K SF, Harvest partner Preston O’Connell said in the release.

“600 California has always been a high quality asset, with challenges stemming from ownership instability, not from the real estate itself,” O'Connell said.

Robust Q1 2026 leasing spurred in large part by artificial intelligence companies led to more than 1.6M SF of net absorption, JLL reported. AI companies increased their office footprint by nearly 700K SF in the quarter, dropping the city’s overall office vacancy rate to 32.6%.