California · Office
California office financing.
Bridge and renovation financing for office properties across California, including Class A stabilized assets, value-add repositioning, and adaptive reuse to residential or mixed-use. LA, San Francisco, San Diego, and Bay Area submarkets.
By David Hodara ·
LA, SF, SD, Bay Area
Active markets
$1M-$5M
Loan range
25-35%
SF/LA CBD vacancy
3-4 weeks
Typical close
California office market context
California office is in the middle of a multi-year structural transition. San Francisco and Los Angeles CBDs have seen vacancy rise to 25-35% as remote and hybrid work patterns reduced demand. Some buildings have lost 50%+ of their pre-2020 value. The asset class is bifurcated, with trophy Class A in prime locations stabilizing while older Class B/C buildings face significant repositioning or conversion pressure.
Office underwriting in California is more conservative than other asset classes. Lenders focus heavily on existing rent roll quality, lease term remaining (WALT), tenant credit, and capex requirements for tenant retention. Conversion to residential or mixed-use is increasingly common in some submarkets but requires specialized underwriting around feasibility studies and entitlement risk.
Typical loan products for California office
Each deal gets routed to the product structure that fits. Most office deals in California use one of the following.
Buying California office from outside the US
We finance office in California for investors based outside the United States as readily as for US borrowers. The loan is made to a US LLC rather than to an individual, which keeps it business-purpose, and the underwriting looks at the property rather than at a US credit profile a non-resident has no way to build.
That means no US credit history, no US income documents, no foreign-national rate premium, and no requirement to travel to the United States to close. If you do not yet have the entity, forming one is a step in the process rather than a prerequisite you have to solve alone.
California office FAQ
Is California office still financeable in 2026?
Yes, with selective lender appetite. Trophy Class A in prime locations (Century City, Beverly Hills, prime FiDi, La Jolla) remains financeable at moderate leverage. Class B/C in CBD submarkets faces significant challenges and is typically financed for repositioning or conversion rather than stabilized hold.
What's typical leverage on California office bridge loans?
60-65% LTV on Class A stabilized with strong rent roll, 50-55% on Class B value-add or transitional. Repositioning and conversion loans price separately based on the specific reposition plan and exit thesis.
Are office-to-residential conversions financeable in California?
Yes, and increasingly active in LA and SF where city programs have streamlined approvals. Construction financing for conversion typically requires entitlement complete, structural feasibility study, and sponsor experience with adaptive reuse in California's permitting environment.
How do California rent roll and WALT factor into office underwriting?
Critically. Lenders underwrite to current rent roll (with credit-tenant adjustments), focus on weighted average lease term (WALT) remaining, and stress for rollover risk in the next 24-36 months. Properties with WALT under 3 years face significant rollover risk and price conservatively.
Can a foreign national finance office in California?
Yes. We lend to a US LLC rather than to an individual, and we underwrite the property rather than a US credit profile, so a non-resident with no US credit history and no US income documents can borrow on the same terms a US borrower receives. There is no foreign-national rate premium, and you do not have to travel to the United States to close. The structure is the same in California as in every other state.
Other California asset classes
Got a California office deal? Send it over.
Term sheet inside 48 hours, or a fast no so you can move on. Business-purpose CRE financing only.