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lynn Properties is close to acquiring a $416.5 million mortgage loan that would give it control of the 745,000-square-foot Market Center office complex in San Francisco's South of Market neighborhood. The investor is negotiating with lender Amsterdam ING to purchase the loan secured by two office towers at 555 and 575 Market Street. If successful, Flynn could own the former Chevron headquarters for around $230 per square foot, or $171.4 million.

    The sale would be the largest office deal in San Francisco since the pandemic, according to reports. Flynn plans to acquire the property through foreclosure or a deed-in-lieu of foreclosure with New York-based Paramount Group, which defaulted on the loan this summer. Other suitors for the loan include Houston-based Hines and former landlords DivcoWest and Blackstone.

    Market Center includes two Class A buildings, a 22-story tower built in 1964 and a 40-story tower built in 1975, with expected vacancy rates of 60% by December. Flynn's CEO declined to comment on how the company plans to finance its pending acquisition, but it may bring in a capital partner or obtain funding from a larger group of investors.

    Flynn Properties has experience acquiring distressed properties in San Francisco and owns over 3 million square feet of tech office buildings on the West Coast, as well as hotels and resorts across the US and Mexico.