According to sources, Flynn Properties is currently in discussions to acquire a $416.5-million loan that is backed by Paramount Group’s Market Center. This potential acquisition would make it the largest office transaction in San Francisco since the pandemic began.
Sources familiar with the talks have revealed that Flynn is considering a purchase price of around $230 per square foot for Market Center, which was previously Chevron’s downtown headquarters. This would put the estimated cost at approximately $170 million to $180 million.
The San Francisco Business Times has reported that if Flynn acquires this debt, they could potentially take ownership of Market Center through foreclosure or by working with Paramount Group on a deed-in-lieu transaction. The Manhattan-based company defaulted on their loan this past summer.
Paramount’s lenders, led by Amsterdam ING, have been looking into selling off their debt since late last year and have enlisted Eastdil Secured to assist with the process.
This news was originally reported by Connect CRE.
