You’ve walked past it a thousand times if you’ve ever commuted through the South Financial District. It’s that sleek, 20-story tower standing sentinel at the corner of New Montgomery and Market Streets. Honestly, 33 New Montgomery San Francisco is one of those buildings that feels like it’s been there forever, yet it keeps reinventing itself just when people start writing obituaries for downtown office space.
While some folks are busy talking about the "doom loop," buildings like 33 New Montgomery are quietly doing something different. They aren't just surviving; they're trading hands and getting massive face-lifts. In January 2025, Ridge Capital Investors swooped in and acquired the property via a deed-in-lieu of foreclosure. It was a move that caught the attention of every commercial real estate nerd in the Bay Area. Why? Because it sold for roughly $76.25 million. For context, this same building traded for $147.5 million back in 2014. That is a massive haircut, but it’s also a signal that the market is finally finding its floor.
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The Identity Crisis of 33 New Montgomery San Francisco
Is it a historic landmark or a modern tech hub? Kinda both.
The building was actually constructed in 1986, which, in San Francisco terms, makes it a teenager compared to the century-old masonry around it. But here’s the cool part: the tower literally wraps around a smaller, historic brick-and-timber building. They are physically connected at the basement level. It’s a weird, architectural "hug" that creates a unique structural profile you won't see anywhere else on the block.
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Walking into the lobby today, you don't feel that 1980s corporate gloom. Ware Malcomb recently spearheaded a renovation that swapped out tired finishes for a two-story atrium with a textured feature wall and a new stainless steel awning. It’s got that "hospitality-first" vibe that tech companies crave. If you're a tenant here, you aren't just getting a desk; you're getting a bike room, a tenant lounge, and a fitness center that Pacific Fitness Products decked out with Peloton bikes and Precor gear.
Who is actually working here?
The tenant roster at 33 New Montgomery San Francisco has always been a bellwether for the city’s economy. For a long time, it was the home of Bitly—the link-shortening giant—and several high-growth startups.
Right now, the building is roughly 60% occupied. That sounds low until you look at the rest of the city. In a market where vacancy rates have hovered near 30% across the board, having a stable base of tenants like the equity management platform Carta (who recently renewed a massive chunk of space at 333 Bush, signaling their commitment to the area) keeps the neighborhood humming.
Why the location still wins
- Transit is literally at the door: You are steps from the Montgomery BART/MUNI station.
- The "Palace" Proximity: You’re right across from the Palace Hotel, which is great for those "let's grab a drink after the meeting" moments.
- Efficient Floor Plates: The 10,000 to 13,000 square foot floors are basically the "Goldilocks" size for mid-sized tech firms or law offices that don't want to be swallowed up by a massive floor plate in the Salesforce Tower.
The Real Estate Reality Check
Let's talk numbers because they're wild. The 2024-2025 tax assessment for 33 New Montgomery sat around $177 million. Yet, as we mentioned, the actual sale price was less than half of that. This "valuation gap" is exactly what’s happening across San Francisco right now.
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New owners like Ridge Capital aren't buying these buildings because they’re nostalgic. They’re buying them because the "basis" (the price per square foot) is now low enough that they can offer competitive rents and still afford to build out fancy "spec suites." If you’re a tenant, this is your golden era. You can get Class A space at 33 New Montgomery for a fraction of what it cost five years ago, often with the landlord throwing in a "plug-and-play" kitchen and high-end furniture.
What's Next for the Tower?
The plan for the next eighteen months is pretty straightforward: lease up the remaining 40%.
Ridge Capital is betting on "value-add" improvements. This means more speculative suites—offices that are pre-built and ready for a company to move in tomorrow. Small-to-mid-sized AI startups are the target demographic here. These companies often don't have the time or interest in managing a two-year construction build-out. They want to sign a lease, bring their laptops, and start coding.
Actionable Insights for Tenants and Investors
If you're looking at 33 New Montgomery San Francisco, keep these three things in mind:
- Negotiate hard on TI: Landlords are currently very generous with Tenant Improvement (TI) allowances. If you want a custom lounge or a specific kitchen layout, now is the time to ask.
- Check the "Sublease" market first: While the building is leasing up directly, occasionally "plug-and-play" subleases pop up on floors like the 7th or 19th. These can be even cheaper than direct deals if you only need a 2-year term.
- Leverage the amenities: Don't pay for a separate gym membership. The fitness center in the basement is legitimately high-end and often quieter than the big commercial gyms nearby.
The story of 33 New Montgomery isn't one of decline. It’s a story of a building being "right-priced" for a new version of San Francisco. It’s leaner, it’s more modern, and frankly, it’s more accessible than it’s been in a decade.
If you are evaluating office space in the South Financial District, start by touring the 3rd-floor amenity suite here. It sets a high bar for what a "modern" workspace should feel like in 2026. Compare the "all-in" costs of these spec suites against the older Class B stock on Second Street; you’ll likely find that the value-for-money at 33 New Montgomery is currently hard to beat. Check the latest availability through brokers at Avison Young or Cushman & Wakefield, as they frequently update the floor plans for the remaining vacancies.