After more than 150 years, the San Francisco Art Institute declared bankruptcy in 2023, leaving its iconic campus in the city's picturesque Russian Hill neighborhood vacant.
When the property was listed for sale, questions swirled about its future and what would happen to its most prized asset, a beloved 1931 Diego Rivera mural valued at $50 million.
So there was an audible sigh of relief when a newly formed nonprofit composed of prominent local arts leaders and backed by philanthropist Laurene Powell Jobs, the billionaire widow of Apple co-founder Steve Jobs, said it was buying the 93,000-square-foot campus, including the mural, for around $30 million. The group said the former school would remain a community arts institution and house a residency program for aspiring artists, which was enough to earn the unique deal a 2025 CoStar Impact Award for sale/acquisition of the year in San Francisco, as judged by a panel of local real estate professionals.
San Francisco Supervisor Aaron Peskin, who noted that the property had been eyed by other interested potential buyers for residential redevelopment, told the New York Times that the deal to save the historic arts school was "a huge shot in the arm for the entire city."
The original structure, with its iconic bell tower, interior courtyard, Anne Bremer library, classrooms, galleries and offices, was built in 1926 and designed by architects Bakewell and Brown. The addition built in 1968 was designed by Paffard Keatinge-Clay and has a rooftop amphitheater, interior theater, galleries, studios, and vast plazas with legendary views of San Francisco and the bay.
But art experts and San Francisco boosters say the school's legacy is priceless—to say nothing of its collection, which includes primary-source material documenting the art school’s history and Northern California art movements dating back to 1871. Before suspending educational programming in 2022, the San Francisco Art Institute was one of the oldest art schools in the United States. Its alumni include distinguished artists such as painter Richard Diebenkorn, photographer Annie Leibovitz, filmmaker Kathryn Bigelow and Obama portraitist Kehinde Wiley.
About the project: This unique and complex sale came together in short order and involved zoning challenges, special requirements connected to its designation as a historic property, and the Diego Rivera mural, which will be kept in a viewing room.
What the judges said: "This building is a San Francisco treasure and deserves a new life," said Michael Sanberg, a broker with Touchstone Commercial Partners. Hans Hansson of Starboard CRE added, "It speaks to the future potential of San Francisco."
They made it happen: Cushman & Wakefield’s Tom Christian and Tim Garlick represented the seller. Other parties who assisted with the sale included trustee Paul Mansdorf, attorney Greg Kleiner of Rincon Law, and Carey Barker and Jake Lavin of the Regents of the University of California.