Sausalito Firm FH One Buys Walnut Creek Office Tower for $22M

Sausalito-based investment firm FH One Investments has purchased the four-story, 106,000-square-foot Class A office building at 500 Ygnacio Valley Road in downtown Walnut Creek for roughly $22 million, according to reporting by Eric Tanaka in Hoodline citing the San Francisco Business Times and The Real Deal.

Located 2 blocks east of the downtown Walnut Creek BART station — roughly a 10-minute walk from the transit hub and less than half a mile from the Interstate 680 and Highway 24 interchange — the property is currently about 70% leased to tenants that include United Business Bank and Old Republic Title.

Transaction Details and Direct Management Plans

According to The Real Deal, the $22 million acquisition was completed as a deed-in-lieu transaction and represents a price roughly 37% below what prior owner BroadShore Capital Partners paid when it acquired the property in 2016. Principal Real Estate Investors had brought the building's loan — which carried an unpaid balance of $26 million — to market in May 2026.

FH One Investments President Daria Hosseinyoun stated that the earlier loan sale reflected a shift in property valuation rather than a failure of the building or the downtown Walnut Creek submarket. FH One plans to manage 500 Ygnacio Valley Road directly rather than hiring a third-party operator, with planned capital upgrades including a new tenant lounge and a redesigned conference center aimed at financial services, legal, insurance, and professional services firms.

Expanding East Bay Footprint and Walnut Creek Leasing Trends

The Walnut Creek purchase expands FH One's East Bay commercial portfolio:

• Concord and Oakland Holdings: In summer 2026, FH One acquired the 176,000-square-foot Sutter Square office complex in Concord at a 58% discount after the property reverted to its lender the prior year. The firm also owns the former Pacific Gas & Electric headquarters at 1625 Clay Street in Oakland, where it has floated a potential residential conversion.
• Walnut Creek Submarket Activity: According to third-quarter 2026 data from Cushman & Wakefield, the broader Walnut Creek office market recorded a 30.3% vacancy rate alongside 40,651 square feet of positive net absorption and 272,997 square feet of total leasing activity — 93% of it in Class A buildings — with overall asking rents averaging $3.06 per square foot per month on a full-service basis. First-quarter Colliers data put Downtown Walnut Creek overall vacancy at 22.5% (25.0% for Class A space) with Class A asking rents between $3.35 and $6.25 per square foot. Other recent Walnut Creek office sales include Synergy Petroleum Enterprises' $14.5 million ($113 per square foot) purchase of the 128,090-square-foot building at 1600 Riviera Avenue and Cilker's $7.7 million ($362 per square foot) purchase of the 21,200-square-foot building at 2099 Mount Diablo Boulevard.