Confidential · Private Offering · Regulation D 506(b)

747 Front Street, San Francisco, CA

Investor Offering

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Investor Offering · San Francisco

747 Front Street

An off-market office acquisition in one of San Francisco's most constrained submarkets in a GP position alongside an institutional LP (Landrock Capital Partners).

View the Thesis

Target Co-GP Co-Investment Returns

0%
Target Net Levered Return¹
0×
Target Net Multiple¹
0 mo
Target Hold Period
$0/sf
Acquisition Basis

Anticipated Close - July 1

¹ Target Net Returns Target net levered return and target net multiple are projections derived from Pendulum's Base Case underwriting. Net targets are not guarantees. Actual net returns will vary based on lease-up timing, capital-markets conditions, and other factors detailed in the offering memorandum. See full risk factors and forward-looking-statement disclaimers at the bottom of this page.

The Thesis

Opportunity to buy one of the best office buildings in one of San Francisco's most desirable submarkets and capture early cycle recovery growth.

Transaction History

Ares originated a $54.9M loan on the building in 2019 against a $70.5M purchase (all-in basis of $1,019 PSF). Pendulum is acquiring the asset directly from Ares for $47.2M following deed-in-lieu foreclosure — roughly 86¢ on the dollar of the original origination, and ±57% of the current owner's all-in basis. Prior ownership and tenants have invested significant capital into cosmetic and back-of-house improvements that new ownership does not have to spend.

The Asset

747 Front Street, San Francisco

Historic creative office in Jackson Square — 81,606 sf, fully renovated/modernized in 2014 and 2020.
Building Area81,606 sf
Year Built / Renovated1909 / 2014 / 2020
In-Place Occupancy±73.7%
Stabilized Occupancy±90.6%
WALT±4.5 years
SubmarketJackson Square
Re-introduction to the leasing market
  • Building set to be re-introduced to the leasing market following a rightsized capital stack and reset basis — allowing the landlord to “meet the market.”
  • The property has historically been 100% leased and now with the 3rd floor vacancy allows ownership to re-introduce it to the market
Tenant Base

Diversified across e-commerce, law, venture capital, and fitness, with substantial in-place tenant investment from prior ownership.

81,606 Sq Ft Total
BraunHagey & Borden — 4th Floor & Roof
Law · $300+ PSF total build out · leave mark to market to next buyer ±29%
3rd Floor (Vacant) — Re-Tenanting
Substantial residual value from existing improvements · ±$85 PSF turnkey build-out budgeted ±25%
Minted — 2nd Floor
E-Commerce · in building since 2014 · long term renewal / blend & extend ±25%
IVP — 1st Floor
Venture Capital · in building since 2020 · $300+ PSF total build out · likely renewal prior to sale ±12%
Empower — 1st Floor
Fitness · in building since 2012 · sticky tenant ±9%
747 Front St
Jackson Square
The Location

Two blocks from the Embarcadero, in the heart of Jackson Square.

Jackson Square continues to outperform the broader San Francisco office market as the city enters the early innings of recovery, supported by a sharp acceleration in leasing activity and tenant demand. Citywide new leasing volume in 2025 exceeded pre-pandemic 2019 levels, while Q1 2026 leasing activity reached its highest quarterly total since 2018 — signaling meaningful momentum returning to the market, particularly within Class A product and the CBD.

  • The San Francisco overall vacancy rate has declined by 110 basis points in Q1 2026 to 31.6%. It has fallen in five of the last six quarters and is at its lowest figure since the 29.6% in Q3 2023
    • Jackson Square has significantly outperformed the San Francisco market sitting at 18.6% vacancy as of Q1 2026
  • Direct Vacancy in Tier 1 Assets — 9.4% (50% of which is contributed to One Market Plaza)
  • Direct Vacancy in Tier 2 Assets — 21.6% (drops with leasing at 300 Howard / 425 Market St)

Tenant demand has rebounded materially across both large and midsize users, with active requirements increasing from 6.4MM SF to 8.1MM SF year-over-year and now approaching prior-cycle peaks. Demand within the 15K–25K SF segment increased meaningfully year-over-year, with active tenant requirements rising from approximately 795K SF to 1.19MM SF, representing ±50% growth. Demand continues to be led by technology, financial services, legal, and professional services firms that increasingly favor creative, amenitized office product in walkable submarkets like Jackson Square.

  • San Francisco witnessed 4.3% QoQ rent growth across SF CBD office, even more pronounced in right-sized capital stack properties
  • Within Jackson Square comp set, same-building rent growth has witnessed over 8% annually over the last two years

Unlike the broader high-rise CBD, Jackson Square offers a differentiated historic and low-rise office environment characterized by superior light, air, walkability, and human-scale streetscapes. The neighborhood combines best-in-market restaurants, coffee, retail, executive housing proximity, and regional transit connectivity with effectively no future competitive supply due to historic and zoning constraints — creating one of the most supply-constrained and highest-quality office ecosystems in San Francisco.

Map © Google. For the full amenity overlay, see the offering memorandum.

Market Insight

What Jackson Square is leasing and trading at today.

Recent comparable transactions support both the in-place rent roll and the path to stabilized basis. A selection of 2025–2026 lease and sale comps in the immediate Jackson Square / North Waterfront submarket is shown below.

Lease Comps
Building Type Size Start Date Term Rent (FSG) Free Rent TI
One Beach Street New Lease 12k SF Jun-2026 39 mo. $95 3 mo. ~$30 ($10/yr)
1160 Battery St (Levi's Plaza) New Lease 21k SF Feb-2026 64 mo. $96 4 mo. $20
394 Pacific Sublease 8.9k SF Mar-2026 24 mo. $84 — —
500–560 Davis Street (NorthPark) New Lease 7k SF Nov-2025 65 mo. $94 5 mo. $105
747 Front Street — UW New / Renewal — — 91 mo. $94 7 mo. $140 (new) / $30 (renew)

More lease comps available upon request.

Business plan targets market rents similar to comps, albeit in a superior building and with higher tenant concessions.

Sale Comps
Building Date Price $/SF Stabilized $/SF Leased Buyer
394 Pacific May-2026 $33.0M $620 ~$770 100% Zurich Investments
600 Battery Aug-2026 $70.0M $562 ~$712 100% Madison Capital / Fortress
500 Washington Dec-2024 $32.7M $297 ~$847 ±39% Brick & Timber / Barings (heavy renovation, de-tenanting)
747 Front Street Target July-2026 $47.2M $578 $639 74% Pendulum / Landrock

More sale comps available upon request. Comps shown are approximate and based on broker market intelligence.

Run the Numbers

What does this look like with your check size?

Underwriting Co-GP investment to a 23.93% Target Net Levered IRR and 1.48× Target Net Equity Multiple in the base case. Enter your check size below to see the illustrative profit.

Financing outperformance

Accretive seller financing relative to market: 70% LTC (inclusive of all closing / diligence costs), 6.25% Fixed, Three (3) Year Term. Likely market financing would have been 60% LTC at SOFR + 400s — coupled with cumbersome sweeps, DSCR, and DY tests that create misalignment with the business plan.

Subject to change based on final debt terms with Ares.

Your investment
$
Min $100,000 · Max in this Co-GP round $2,200,000
23.93%
Target Net Levered Return²
1.48×
Target Net Multiple²
$370,000
Total Net Return of Capital²
$120,000
Illustrative Profit²

Anticipated Close - July 1

² Illustrative Only. Target net levered return and target net multiple are projections derived from Pendulum's Base Case underwriting. Net targets are not guarantees. Actual returns will vary based on lease-up timing, capital-markets conditions, and other factors detailed in the offering memorandum. See full risk factors and forward-looking-statement disclaimers at the bottom of this page.

GP Structure

9.00% preferred return to Co-GP investors and 70/30 split thereafter. No fees to GP investors.

Timeline

How the deal is funded and what happens when.

Sources
Initial GP Equity (Co-GP)
$2.2M
Initial LP Equity
$12.3M
Senior Debt (Ares Seller Financing)
No future funding · subject to change based on final debt terms with Ares
$33.9M

Initial close-cost basis ±$48.3M. Remaining ±$3.8M in TI/LC, CapEx, and reserves funded over the hold to a targeted stabilized basis of $52.1M ($639 PSF).

Uses
Acquisition Price$47,200,000
Per Square Foot$578 / sf
Financing / Closing Costs±$1.2M
Remaining TI, LC, CapEx & Reserves±$3.8M
Total Uses±$52.1M
Target Stabilized Basis $52.1M ($639 / sf)
±63% discount to previous ownership basis of $1,019 PSF
24-month execution timeline

Click any milestone to see the detail. There are no assurances such results will be achieved, and milestones are subject to change.

Q2 2026
Close acquisition

Pendulum closes on the off-market acquisition at $47.2M ($578/sf). Senior debt (Ares seller financing at ±70% LTC) funds concurrently. Title transfers and Pendulum takes control of day-to-day operations and management alongside Landrock.

  • Wire Co-GP equity contributions to escrow
  • LP equity (Landrock) funded concurrently
  • Seller-financing structured note executed with Ares
  • Reserves funded for working capital and TI/LC
Tenant Specific Strategies

Proactive tenant management discussions layered into the estimated 24-month target hold to maximize residual value at exit

Minted (±25%)

Currently downsizing into 2nd floor with significant tenant investment. Upon close: offer more term and additional TI (with ability to convert to free rent), discuss market today vs. where it will be at their expiration.

3rd Floor Vacancy (±25%)

Leasing velocity will be driven by turnkey spec suite buildout (±$85 PSF), marketing events, and ability to “meet the market” on concessions with new ownership basis.

IVP (±12%)

Not a business-plan requirement, but given above-market rent today aim for an extension of term prior to exit to lock in long-term cash flow for the next buyer.

Empower Gym (±9%)

Convert to low-rent lease — helps the next buyer's underwriting at partnership exit while preserving a sticky amenity tenant in place since 2012.

Ownership / Recent Case Study

A pre-existing partnership with an institutional LP.

Pendulum is acquiring 747 Front St in a joint venture with Landrock, an institutional LP with whom Pendulum has a pre-existing partnership on 505 N Brand in Los Angeles. This existing partnership provides a strong framework for reporting, asset management, and day-to-day operations that will result in outperformance at 747 Front.

Existing Partnership Case Study

505 N Brand · Glendale, CA — Pendulum × Landrock joint venture, acquired February 2025.

  • 30k+ square feet of new leasing completed within the first four months of ownership
  • 65k+ square feet of renewals and new deals under negotiation
  • 6k square feet added through BOMA 2024 re-measurement
  • Amenity upgrades: (1) Golf simulator renovation completed; (2) restaurant operator agreement executed / restaurant construction completion estimated for Q3 2026
  • Additional information of Landrock Capital Partners can be found here - www.landrock.com
505 N Brand — 15-story Class A office tower in Glendale, CA
Deal Team

Direct points of contact at Pendulum

Primary point of contact for Q&A

Dan Wagman · Partner
dwagman@pendulumpp.com · 310.490.2523

Kevin Hayes · CEO
khayes@pendulumpp.com · 949.939.2839

Brian Walker · President
bwalker@pendulumpp.com · 646.258.9614

Brady Thomson · Senior Vice President
bthomson@pendulumpp.com · 626.372.5555

Xander Echt · Senior Associate
xecht@pendulumpp.com · 224.343.0353

Frequently Asked

Common questions

$100,000 minimum for this round.
  1. Market — Mitigants: Jackson Square diversified tenant base, outperformance vs. remainder of city, sticky tenancy.
  2. 3rd Floor Lease-Up — Mitigants: lack of move-in-ready availability in submarket, market comps at inferior assets.
  3. Exit — Mitigants: size of investment allows for wide buyer pool, exit basis below prior sale and below replacement cost, ability to refinance and hold due to rent roll and rollover profile.

Downside scenario still results in strong risk-adjusted returns.

Quarterly distributions of available cash flow during the hold, plus a capital-event distribution at refinance or sale. Specific waterfall terms are detailed in the Subscription Agreement.
Next Step

Ready to take a closer look?

Subscribe to the offering - or reach out to Dan Wagman directly via email.

Subscribe to the Offering Email Dan Wagman
Important Disclosures
Read before evaluating this offering.
No Offer of Securities This page is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. Any such offering will be made only by means of a subscription agreement that will be furnished to qualified investors upon request. Statements contained herein are qualified in their entirety by reference to the subscription agreement. In the event of any inconsistency between this page and the subscription agreement, the subscription agreement controls.
Forward-Looking Statements This page contains forward-looking statements, including but not limited to projections of target net returns, target net multiples, hold period, exit value, cash flow, occupancy, mark-to-market rents, and capital-stack assumptions. These statements are based on Pendulum's current Base Case underwriting assumptions (subject to change). Forward-looking statements are inherently uncertain and involve risks. Actual results may differ materially from those projected due to a wide range of factors, including but not limited to capital-markets conditions, interest-rate movements, leasing-market dynamics, tenant performance, construction costs, regulatory changes, and other factors.
Target Net Returns Are Not Guarantees All references to "target," "projected," "underwritten," "illustrative," or similar terms — including the 23.93% Co-GP target net levered return and 1.48× target net multiple — are estimates only. They are not commitments, guarantees, or representations of expected returns. Past performance of Pendulum or its affiliates is not indicative of future results. Real estate investments involve substantial risk, including the potential loss of principal.
Accredited Investors Only This offering is limited to accredited investors as defined under Rule 501(a) of Regulation D promulgated under the Securities Act of 1933. Accreditation will be verified as part of the subscription process. Non-accredited investors are not eligible to participate.
No Tax, Legal, or Investment Advice Pendulum is not your tax, legal, or investment advisor. Prospective investors should consult their own advisors before making any decision regarding this offering.
Confidentiality The information contained on this page is confidential and intended only for the recipient. Reproduction, forwarding, or distribution to any unauthorized person is prohibited.
$2.2M Co-GP · 24mo23.93% Target Net¹ · 1.48×
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