Hines and Korea’s National Pension Service (NPS) are reviving one of San Francisco’s most ambitious real estate projects—a 1,225-foot tower that could soon become the tallest on the U.S. West Coast. But behind the architectural aspirations lies a story of market turmoil, quiet restructuring, and patient capital.

The project centers on the redevelopment of 77 Beale Street, formerly PG&E’s headquarters, into a mixed-use office and residential campus. It’s backed by a $1.5 billion build-to-core fund established in 2020 between Hines and NPS, with a total planned capacity of $5 billion.

When Hines and NPS acquired the PG&E/Matson block for $800 million in 2021, few could have predicted the rapid unraveling of San Francisco’s office market. The pandemic’s lasting impact, coupled with elevated vacancy rates and rising borrowing costs, left many large-scale developments across the city in limbo.

This project was no exception. With leasing activity sluggish and financing conditions tightening, the outlook grew increasingly uncertain.

In a difficult environment, where many investors pulled back or paused, NPS leaned in. Rather than treating the investment as a passive holding, Korea’s state pension fund took an active role in preserving the project’s viability.

While details remain private, sources indicate that NPS was instrumental in navigating negotiations with the senior lenders—including Goldman Sachs, Blackstone, and Pentagon Federal Credit Union—ultimately facilitating a full repayment of the outstanding debt. That move helped stabilize the capital structure and restore momentum to the project.

The revised $2.5 billion “Atlas Block Campus” will include 1.65 million square feet of next-generation office space, restored historic facades along Market Street, a residential conversion at 25 Beale Street, and new public plazas designed to reinvigorate the downtown fabric.

Hines, which previously co-developed Salesforce Tower and led PG&E’s 1990s-era redevelopment, brings deep local expertise. But in this case, it was the durability of institutional capital—and the willingness to stay the course—that kept the vision alive.

Now, as construction prepares to move forward, the project stands not only as a physical landmark but as a case study in adaptive strategy. The build-to-core approach, originally conceived in a different market cycle, has been reshaped—not abandoned—thanks to timely action and patient backing.

San Francisco Mayor Daniel Lurie called the plan “a transformation of an underused city block into a dynamic mix of residential, office, retail, and public space.” For NPS, it’s also a long-term bet on urban resurgence—executed not just with capital, but with conviction.