Juul Has Been Trying To Sell San Francisco Office Tower For Years

According to the San Francisco Business Times, real estate investment firm Affinius Capital is planning to sell loan claims related to Juul Labs office building at 123 Mission Street in San Francisco, with US private equity and real estate firm Madison Capital expected to become a buyer.

Juul Has Been Trying To Sell San Francisco Office Tower For Years

The report states that the transaction has not yet been finalized. If the debt is identified as a non-performing asset, Madison Capital may acquire ownership of the property through redemption or negotiated transfer.

Juul purchased this 29 story, approximately 387000 square foot office building for $397 million in June 2019 to support the company’s expansion. However, due to regulatory pressure, the company’s valuation has declined and there have been significant layoffs. In May 2020, Juul announced the relocation of its headquarters to Washington D.C. and listed the building for sale, but multiple transactions including PGIM and Pimco (both well-known asset management companies) failed.

It is reported that Madison Capital had previously partnered with PGIM to bid for the property, but may now resell it at a price lower than its pre pandemic valuation (approximately $1100 per square foot, totaling around $400 million).
Affinius (formerly Square Mile Capital) provided a $220 million loan for Juul’s acquisition of the property and has gradually reduced its San Francisco real estate investments in recent years, selling off One Montgomery and acquiring debt assets at 600 Battery Street.

Juul previously attempted to rent out some floors of the building to the public, but did not make any substantial progress.

Reference: Lenders near deal to sell debt behind Juul Labs’s S.F. office tower – San Francisco Business Times

how about juul labs company’s background?

1. Juul Labs was co-founded by Adam Bowen and James Monsees. They are as part of Pax Labs’ work, and the company formally spun out in 2015.
2.The company is headquartered in San Francisco, USA.
3. Its stated mission: “to transition the world’s billion adult smokers away from combustible cigarettes, eliminate their use, and combat under-age usage of our products.”
4.The business model: develop a closed system of an e-cigarette device plus proprietary pods (“JUULpods”), sell the device plus recurring consumables (pods) to adult smokers.
5. It achieved very rapid growth in the U.S. market: by late 2017/2018, it had captured a large share of the U.S. vape market (some sources say ~70% in 2018).

More reports about JUUL vape:

Juul Labs Sues NJOY & Altria Group Again Accusing of Vape Patent Infringement

PAX Labs JUUL 337 Wins Lawsuit Against ALD Group Limited NJOY